Copart downgraded to underweight from neutral at J.P. Morgan
Copart downgraded to underweight from neutral at J.P. Morgan
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Copart downgraded to underweight from neutral at J.P. Morgan
Copart's stock plunges 19% to 4-mo. low after Q4 results before the open
Shares of Copart Inc. tumbled 12% in premarket trade Wednesday, after the online vehicle auctions company reported a fiscal fourth-quarter profit that missed expectations. Net income for the quarter to July 31 rose to $109.7 million, or 45 cents a share, from $70.3 million, or 30 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 42 cent, below the FactSet consensus of 48 cents. The company said results were hurt by abnormal costs of $79.7 million incurred because of Hurricane Harvey, including temporary storage facilities, premiums for subhaulers, overtime wages, lodging for reassigned employees and equipment lease expenses. Revenue increased to $449.2 million from $378.6 million, above the FactSet consensus of $448.6 million, as service revenue growth of 16% to $391.7 million missed the FactSet consensus of $397.2 million but the vehicle sales rise of 38% to $57.6 million topped expectations of $53.0 million. The stock had soared 48.6% year to date through Tuesday, while the S&P 500 has gained 8.6%.
Copart's stock tumbles 8.1% premarket after Q4 results
Both the Dow and S&P pushed ahead, helped by hope for a resolution on trade as the U.S. economy continues to show strength.
Among the companies with shares expected to trade actively in Tuesday's session are General Electric, Applied Materials, Intel, Wells Fargo, Bank of America and Amazon.com.
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Copart, Inc. engages in the provision of online auctions and vehicle remarketing services. It provides vehicle sellers with a full range of services to process and sell vehicles primarily over the internet through Virtual Bidding Third Generation Internet auction-style sales technology. It sells the vehicles principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters and at certain locations, as well as to general public. Its services include online seller access, salvage estimation services, estimating services, end-of-life vehicle processing, virtual insured exchange, transportation services, vehicle inspection stations, on-demand reporting, DMV processing, and vehicle processing programs. The company was founded by Willis J. Johnson in 1982 and is headquartered in Dallas, TX. (See Full Profile)
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