AutoNation's inventory reached a new all-time record of greater than $130 a share Thursday after the nation's largest vendor of new vehicles reported its sixth consecutive quarterly earnings record.
AutoNation beat Wall Street's revenue and gross sales estimates, led by resilient shopper demand outpacing car provides as a result of an ongoing international scarcity of semiconductor chips that has resulted in record automotive costs and earnings.
Shares of the Florida-based dealership group jumped by as a lot as 12% Thursday morning earlier than retreating to about $124 a share, up by about 6%. AutoNation's inventory is up by practically 70% up to now this yr.
The firm reported adjusted earnings per share of $5.12 within the third quarter – an all-time record – beating analysts' estimates of $4.20 a share, in keeping with Refinitiv. AutoNation's income for the quarter jumped by18% to $6.38 billion in contrast with estimates of $6.31 billion.
AutoNation reported internet earnings of $361.7 million, virtually double the $182.6 million in revenue it generated a yr earlier.
"We are pre-selling what's being scheduled to be produced," AutoNation CEO Mike Jackson stated Thursday throughout CNBC's "Squawk Box." "They're coming in and going right out … the demand is there."
In addition to the record earnings, AutoNation additionally introduced an acquisition that's anticipated to generate about $420 million in annual income. The firm's board additionally authorised the repurchase of as much as $1 billion of AutoNation's frequent inventory.
AutoNation beforehand stated it was repurchasing 7.9 million shares of frequent inventory, or 11% of shares excellent, for an combination buy worth of $879 million within the t
AutoNation's earnings had been led by a 53% enhance in used car gross sales in comparison with a yr earlier, whereas new car gross sales had been roughly flat.
The firm reported same-store new gross revenue per new car was a record $5,484, up $2,949. Gross revenue per used car was $2,104, up $108 from a yr earlier and 51% in comparison with the third quarter of 2019, in keeping with the corporate.
based mostly on website supplies www.cnbc.com