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Copart (CPRT) Expands Location in Eight Mile, Alabama (Revised)


Copart Inc. CPRT has announced the expansion of its location in Eight Mile, AL, near Mobile. This is the sixth expansion and the ninth new location for Copart announced in 2017.

This Eight Mile location expansion increases storage capacity for salvage and clean title vehicles, which are sold through weekly online auctions. Online car bidding for the Eight Mile location will be held every Monday at noon CT. The auction is accessible via computers, tablets, other mobile devices and bidding kiosks, available at each company location.

Besides holding online vehicle auctions, Copart is also a community partner. In 2016, the Tanner, Alabama location provided a safe training environment for new recruits of the Decatur, Alabama fire department. Local fire departments, law enforcement and similar government agencies are encouraged to contact the general manager of any company location to learn about conducting training at Copart.

Copart’s top-line performance has started improving after witnessing weakness for few years due to lower revenues from vehicle sales. Total revenues in the first nine months of fiscal 2017 increased 14.3%. Also in fiscal 2016, total revenues climbed 10.7% year over year to $1.27 billion, driven by a 12.1% increase in service revenues and a 2.1% rise in revenues from vehicle sales.

The company has been expanding its network of facilities to manage the rising volumes. It is also widening its base in several new markets. Apart from the U.S., it has also been focusing on expanding in the Middle East over last few years.

On the flip side, due to its existence at various international markets, the company is facing foreign currency headwinds. In third-quarter fiscal 2017 (ended Apr 30, 2017), foreign currency fluctuations led to an unfavorable effect of $7.4 million on revenues, chiefly due to weakening of the British pound.

Copart is also incurring higher selling, general and administrative (SGA) expenses that rose over $8 million year over year in first nine months of fiscal 2017.

Price Performance

Copart’s shares have outperformed the Zacks categorized Auction and Valuation Services industry in last one month. The stock gained 5.1% compared to industry’s increase of 4.5%.

Zacks Rank & Key Picks

Copart currently carries a Zacks Rank #3 (Hold).

Copart, Inc. Price and Consensus

Copart, Inc. Price and Consensus | Copart, Inc. Quote

Better-ranked companies in auto space include Allison Transmission Holdings Inc. ALSN, Dana Incorporated DAN and Ferrari N.V. RACE. All three sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Expected long-term growth rate for Allison Transmission, Dana and Ferrari are 11%, 3% and 14.1%, respectively.

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(We are reissuing this article to correct a mistake. The original article, issued on Jun 2, 2017, should no longer be relied upon.)

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