(Reuters) – Online vehicle auction services provider Copart reported better-than-expected first-quarter revenue on Thursday, driven by robust volumes of salvage vehicles.
Increasing vehicle complexity and rising labor costs have led customers to favor totaling vehicles over repairing them.
Improving acquisition costs for the vehicles sold by the company, which also offers remarketing services for selling damaged and total-loss vehicles, have also significantly driven down Copart’s expenses.
The Dallas, Texas-based company’s first-quarter revenue rose 12.4% to $1.15 billion, skidding past analysts’ estimates of $1.10 billion according to data compiled by LSEG.
Copart’s net income rose to $361.2 million, or 37 cents per share for the quarter ended October 31, from $332.5 million, or 34 cents per share a year earlier.
(Reporting by Raechel Thankam Job; Editing by Mohammed Safi Shamsi)
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