Used car seller Copart heads for worst day in 15 years on Hurricane Harvey costs

  • Copart reports weaker-than-expected quarterly results and said Hurricane Harvey cost the company nearly $80 million for the year ended July 31.
  • Fiscal fourth-quarter earnings came in at 42 cents a share, below a consensus estimate of 48 cents. Revenue topped expectations, however.
A man shops for used vehicles at the Toyota of Deerfield dealership in Deerfield Beach, Florida.
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A man shops for used vehicles at the Toyota of Deerfield dealership in Deerfield Beach, Florida.

Shares of used car seller Copart were on pace for their worst day in more than 15 years on Wednesday after the company said its results took a hit from costs it incurred during Hurricane Harvey.

The company's stock dropped 16 percent and was on track for its worst day since Feb. 19, 2003, when it plummeted 23.7 percent.

Copart said Wednesday that hurricane costs totaled $79.7 million for the year ended on July 31. The company said these costs included temporary storage facilities, overtime pay for workers and premiums for subhaulers.

For the fourth quarter, earnings came in at 42 cents a share, which is less than the consensus analyst estimate of 48 cents a share as tracked by FactSet.

Revenue for the fiscal fourth quarter was $449.2 million, slightly higher than the $448.6 million expected.

Despite Wednesday's decline, the stock is still up more than 26 percent in 2018. It has also surged 67 percent over the past 12 months.

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