) gained 1.8% to reach $32.18 on Nov 6, 2013, before inching down
to close at $31.84. The uptick in share price followed the
company's acquisition of Canada-based Berpa Auto Auction Inc, a
privately held automotive auction. The financial terms of the
deal were not divulged by Copart.
The acquisition will support Copart's efforts to establish a
network of locations in Canada. Berpa Auto, situated in Montreal,
will be Copart's first eastern Canada location. The company has
facilities in central and western Canada in the provinces of
Ontario and Alberta, respectively.
Copart is extending its reach to other areas as well. In Jun
2013, the company expanded in Spain with the takeover of
Autoresiduos S.L., a salvage valuation and marketing platform
that focuses on insurance markets. In May 2013, Copart acquired
Salvage Parent, Inc., which has operations in 39 locations in 14
Copart reported earnings per share (EPS) of 32 cents for
fourth-quarter fiscal 2013 (ended Jul 31, 2013), down 8.6% from
35 cents in the corresponding quarter last year. The EPS missed
the Zacks Consensus Estimate by 8 cents. Net income declined 8%
to $41.3 million from $44.9 million in the year-ago quarter.
Copart's revenues rose 16.4% to $263.7 million in the quarter,
beating the Zacks Consensus Estimate of $262 million. The Salvage
Parent, Inc. acquisition aided revenues by $11.2 million.
Copart is a prominent player in the online auctions and
vehicle remarketing services market in the U.S., Canada, U.K. and
U.A.E. along with
Ritchie Bros. Auctioneers Inc.
Liquidity Services, Inc.
). The company provides a wide range of remarketing services to
vehicle suppliers, primarily insurance companies, to process and
sell salvage vehicles mainly over the Internet through the
company's Virtual Bidding Internet auction-style sales
technology. Currently, the company retains a Zacks Rank #5
SOTHEBYS (BID): Free Stock Analysis Report
COPART INC (CPRT): Free Stock Analysis Report
LIQUIDITY SVCS (LQDT): Free Stock Analysis
RITCHIE BROS (RBA): Free Stock Analysis
To read this article on Zacks.com click here.