Shares of Copart, Inc. (CPRT - Free Report) 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 U.S. states.
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 Sotheby's (BID - Free Report) , Ritchie Bros. Auctioneers Inc. (RBA - Free Report) and Liquidity Services, Inc. (LQDT - Free Report) . 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 (Strong Sell).