Copart, Inc. (NASDAQ: CPRT) stock rose over 4.7% on November 21st, 2018 pre-market session after the company for first quarter of FY 19 grew sales and earnings by double-digit percentages, though revenue growth was lower than in the past several quarters. During the first quarter of FY 19, the company has delivered revenue, gross profit, and net income were $461.4 million, $195.9 million, and $114.1 million, respectively. These represent an increase in revenue of $42.2 million, or 10.1%; an increase in gross profit of $32.7 million, or 20.0%; and an increase in net income of $36.6 million, or 47.2%, respectively, from the same period last year. Fully diluted earnings per share for the three months were $0.47 compared to $0.32 last year, an increase of 46.9%. Excluding the impact of disposals of non-operating assets, foreign currency-related gains and losses, and certain income tax benefits related to accounting for stock option exercises, non-GAAP fully diluted earnings per share for the three months ended October 31, 2018 and 2017, were $0.47 and $0.33, respectively
Copart grew sales by 18.7% in the fourth quarter of 2018 , 28% in the third quarter, 31% in the second, and 21% in the first. The slowdown appears to have come from the company’s services sales, which grew by just 5.5% in the first quarter.
The operating results for the three months ended October 31, 2017 were adversely affected by abnormal costs of $35.8 million, incurred as a result of Hurricane Harvey. These costs included temporary storage facilities; premiums for subhaulers; labor costs incurred from overtime; travel and lodging due to the reassignment of employees to the affected region; and equipment lease expenses to handle the increased volume, as well as cost of vehicle sales. These costs, net of the associated revenues of $18.6 million, generated pre-tax loss for the three months ended October 31, 2017 of $17.2 million.
Meanwhile, CPRT will auction vehicles from its new location in Stuttgart, Germany. The facility is located at Neuwiesenstr. 2, 73235 Weilheim an der Teck, near Stuttgart, Germany. Eligible buyers can bid on vehicles on Copart.de. The website is available in German, English, Polish and Spanish. Bids may also be placed through the Copart Mobile App for iOS and Android devices. The new Stuttgart location will auction vehicles online starting Nov. 29 at 12 p.m. Central European Time.