Copart Q2 Profit Misses View, But Revenues Top

(RTTNews.com) - Online vehicle auctioneer Copart, Inc. ( CPRT ) reported Wednesday a profit for the second quarter that edged down from last year, reflecting higher yard operation and vehicle sales costs. Earnings per share missed analysts' expectations, while quarterly revenues topped their estimates.

The company noted that the latest quarter was "adversely affected by abnormal costs incurred as a result of hurricane Sandy" and reduced earnings per share by $0.06.

Copart runs an online auction system for salvage vehicles, whereby buyers purchase these cars primarily to dismantle them and reuse the parts. Copart charges both buyers and sellers to participate in the auction.

The Fairfield, California-based largest auctioneer of damaged and recovered stolen vehicles in the U.S., reported net income of $39.64 million for the second quarter, lower than $40.60 million in the prior-year quarter. However, earnings per share remained flat with last year at $0.31.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter increased 16.8 percent to $266.19 million from $227.90 million in the same quarter last year., and topped Seven Wall Street analysts' consensus estimate of $244.71 million.

Service revenues for the quarter grew to $217 million from $187 million, and vehicle sales increased to $49 million from $41 million in the year-ago quarter.

Operating income for the quarter decreased to $62.77 million from $63,54 million in the year-ago quarter, while total operating expenses were $203.42 million, up from $164.37 million in the prior-year quarter.

CPRT closed Wednesday's regular trading session at $35.19, up $0.64 or 1.85% on a volume of 1.02 million shares.

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