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Copart shares tumble following 4Q earnings miss as Hurricane Harvey continues to take its toll

Last updated: 16:03 19 Sep 2018 BST, First published: 14:59 19 Sep 2018 BST

Car dealership
The online car auction site reported a double-digit jump in vehicle sales

Copart Inc (NASDAQ:CPRT) shares slipped on Wednesday after an earnings miss in its fiscal fourth-quarter results, due in part to the toll Hurricane Harvey took on the Texas company.

The online car auction reported earnings of US$0.45 per share on revenue of US$449.22mln compared with US$0.30 on revenue of US$378.59mln in the previous year’s fourth quarter.

Shares of Copart fell more than 16% to US$53.62 in Wednesday morning trading.

READ: AutoZone shares dip after missing Wall Street's fiscal 4Q revenue estimate, but beats profit forecast

The Dallas-based company reported adjusted earnings of US$0.42 per share, below the consensus estimate of US$0.48. Revenue topped Wall Street estimates of US$448.6mln.

Vehicle sales rose 38% to US$57.6mln, surpassing analyst estimates of US$53mln.

For the fiscal year, the company reported earnings of US$1.73 per share on revenue of US$1.8bn compared with US$1.66 per share on revenue of US$1.4bn in the previous fiscal year.

Hurricane Harvey, a Category 4 hurricane in Texas that hit the Houston metropolitan area especially hard last September,  took its toll on the company’s yearly operating results.

The hurricane cost the Texas company US$79.7mln, including the costs of temporary storage facilities, overtime labor, equipment expenses and travel and lodging for reassigned employees.

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