Copart misses third-quarter profit estimates on lower vehicle sales, higher expenses

May 22 (Reuters) - Copart CPRT.O reported third-quarter revenue and net income below Wall Street estimates on Thursday, as weak vehicle sales and higher expenses offset growth in its services segment.

Shares of the company, which primarily provides auction services to sell damaged and total-loss vehicles to used-car dealers and dismantlers, dropped as much as 4.3% after the bell.

Third-quarter revenue from vehicle sales reached $177 million, a 2.1% decline compared to last year, contrasting with an 8.6% year-over-year increase in the second quarter.

The Dallas, Texas-based company also saw its quarterly facility operating expenses rise by 12.3% to $439 million, while the cost of vehicle sales increased 4.2% to $170 million.

Meanwhile, its service segment grew 9.3% to nearly $1.04 billion during the quarter.

Copart reported total revenue of $1.21 billion for the quarter ended March 31, missing analysts' estimates of $1.23 billion.

Net income for the quarter came in at $406.6 million, slightly below the expected $407.34 million, according to data compiled by LSEG.