(Reuters) – Online vehicle auction services provider Copart beat market expectations for first-quarter revenue and profit on Thursday, helped by higher revenue from its services business.
The Texas-based company provides virtual bidding services to customers across Americas, Europe, the UK and the Middle East. Its primary customers include vehicle dismantlers, rebuilders, repair licensees and used vehicle dealers.
Revenue from the company’s services segment, which consists of vehicle listing, bidding, transportation and storage fees, rose 18.3% to $859.54 million in the quarter through Oct. 31.
“Copart continues to grow its service business nicely, supported by underlying insurance industry growth and revenue growth,” Stephens analyst Daniel Imbro said.
The company posted quarterly revenue of $1.02 billion, compared with analysts’ average estimate of $990.7 million, according to LSEG data.
It reported profit of 34 cents per share, versus analysts’ expectations of 33 cents per share.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Shilpi Majumdar)
