Copart Announces Capacity Expansion At Newburg Location

Copart, Inc. (NASDAQ:CPRT) announced the expansion of its Newburg, NY-based storage space by adding 25 acres. The address of the extended location is 25 Riverview Drive Marlboro, New York, 12542. Buyers can bid at the Newburg location through the company’s proprietary online auction platform VB3 on every Thursday at 9 a.m. Central time.

The addition of space to the existing 68-acre location will support Copart to meet customer capacity requirements. This capacity expansion will offer significant vehicle storage space for the Newburg location’s online auctions.

The company is focusing on expanding its storage capacity throughout the United States and overseas to meet the growing customer demand. Stronger network aids it to add more cars in inventories and sell those at auctions, thus, driving revenues.

Copart, Inc. Price and Consensus

In February, Copart reported results for second-quarter fiscal 2019 (ended Jan 31, 2019). For the quarter, its adjusted earnings per share were 52 cents, beating the Zacks Consensus Estimate. Further, revenues rose 5.6% to $484.9 million, but missed estimates. In the first half of fiscal 2019, Copart announced the opening of 14 new facilities, with four in the United States, eight in Germany, and one each at Brazil and Canada.

The company has massive capacity expansion plans in the United States to support growth and provide stand-alone capacity along the East Coast and the Gulf of Mexico. It has 46 expansion projects in the United States, which are either under construction or in the engineering phase, which will add capacity to Copart’s network.

Apart from the United States, Copart is also expanding its network of facilities in European markets, majorly in the U.K. and Germany. Currently, it has 15 location across the U.K. and 12 in Germany. Strong foothold in domestic as well as international markets diversifies the company’s buyer base and offers competitive growth.

Zacks Rank & Stocks to Consider

Copart currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are Honda Motor Co., Ltd. (NYSE:HMC) , Valeo (PA:VLOF) S.A. (OTC:VLEEY) and General Motors Company (NYSE:GM) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Honda has expected long-term growth rate of 2.9%. The Zacks Consensus Estimate for the company’s earnings for fiscal 2019 has been revised 4.3% upward over the past 30 days.

Valeo has expected long-term growth rate of 0.5%. The Zacks Consensus Estimate for the company’s earnings for 2019 has been revised 0.6% upward over the past 30 days.

General Motors has expected long-term growth rate of 8.5%. The Zacks Consensus Estimate for the company’s earnings for 2019 has been revised 3.7% upward over the past 30 days.

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