Sept 4 - Copart CPRT.O reported fourth-quarter profit above analysts' expectations on Thursday, driven by strength in its high-margin services business that offset weakness in its vehicles unit.

Shares of the company, which provides auction services for damaged and total-loss vehicles to used-car dealers and dismantlers, fell nearly 1% in after-hours trading.

The company's services arm, which generates fees from storing, towing and auctioning vehicles, benefited as rising repair costs and labor expenses pushed more insurers and customers to opt for total-loss settlements, driving higher volumes through its platform.

Analysts at Barrington Research said long-term trends driving higher total-loss frequency remain intact, citing expensive repairs, rising labor and rental costs, and strong demand for damaged vehicles in emerging markets.

Copart's fourth-quarter revenue from its services segment rose 7.1% to $956.21 million from a year earlier, while revenue from vehicle sales fell 4% to $168.89 million.

The company reported earnings of 41 cents per share for the quarter ended July 31, above analysts' average estimate of 36 cents, according to data compiled by LSEG.

Revenue for the quarter came in at $1.13 billion, slightly below the expected $1.14 billion.

(Reporting by Apratim Sarkar; Editing by Mohammed Safi Shamsi)

((Apratim.Sarkar@thomsonreuters.com;))