Copart (CPRT 52.01, -12.16) has slid 19.0% after reporting mixed
quarterly results. Today's dive, which has pressured the stock beneath its
200-day moving average (52.57) comes just a week after the stock notched a
record high at 67.08.
The online vehicle auction company with a physical presence reported below-consensus fourth quarter earnings of $0.42 per share on revenue of $449.20 mln, which increased 18.7% year/year, beating expectations.
Gross profit grew 12.5% to $188.40 mln, but gross margin weakened to 41.9% from 44.2% one year ago. Service revenue grew 16.3% year/year to $391.66 mln while vehicle sales revenue jumped 37.7% year/year to $57.56 mln.
Copart has been actively expanding its footprint in recent months. In June, the company announced the opening of a location in Lumberton, North Carolina as a catastrophe response facility. This 90-acre facility stores vehicles collected from severe weather events along the North Atlantic coastline. This location is likely facing its first test in the aftermath of Hurricane Florence.
The opening of the Lumberton facility was followed by an August expansion of a location in West Warren, MA. In addition, the company opened a new 96-acre location in Spartanburg while a Copart subsidiary—National Powersport Auctions—opened a 66,000-square foot facility near Madison, WI. On the international front, Copart opened a 7,000-vehicle facility near Curitiba, representing the seventh location in Brazil.
The company ended the quarter with long-term debt of $398.75 mln, down 27.6% year/year.
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