Copart Shares Catapulted: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of auto auctioneer Copart (NAS: CPRT) have catapulted today, with gains as high as 12%, after the company reported second-quarter results yesterday.
So what: Revenue in the quarter added up to $227.9 million, paving the path to earnings per share of $0.62. Both amounts easily bested the market's expectations, which called for $218.5 million up top and a $0.59 per-share profit.
Now what: During the quarter, Copart took an impairment of $8.8 million related to writedowns on certain assets like real estate, computers, and its fleet of private aircraft, which have been removed from operations. The company has a new headquarters in Dallas, and will transition to commercial airline services and dispose of its fleet. Copart also bought back almost 2 million shares of stock at a weighted average of $46.34.
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