After the largest new car seller in the United States announced its sixth consecutive quarterly earnings record, AutoNation’s stock hit a record high of more than $130 per share on Thursday.
Due to the global shortage of semiconductor chips, auto prices and profits hit new highs. AutoNation exceeded Wall Street’s profits and sales expectations, mainly due to flexible consumer demand that surpassed auto supply.
On Thursday morning, the Florida-based dealer group’s stock price rose 12%, and then fell back to about $124 per share, an increase of about 6%. So far this year, AutoNation’s stock price has risen by nearly 70%.
Refinitiv’s data shows that the company’s adjusted earnings per share in the third quarter was US$5.12, a record high, exceeding analysts’ expectations of US$4.20 per share. AutoNation’s revenue for the quarter increased by 18%, reaching 6.38 billion U.S. dollars, compared with expectations of 6.31 billion U.S. dollars.
AutoNation reported net income of US$361.7 million, almost twice the profit of US$182.6 million in the same period last year.
“We are pre-selling the planned products,” AutoNation CEO Mike Jackson said on CNBC’s “Squawk Box” program on Thursday. “They go in and out… the demand is there.”
In addition to record earnings, AutoNation also announced an acquisition that is expected to generate approximately $420 million in annual revenue. The company’s board of directors also approved the repurchase of up to $1 billion in AutoNation common stock.
AutoNation has previously stated that it will repurchase 7.9 million shares of common stock, accounting for 11% of the issued shares, with a total purchase price of US$879 million.
the third quater.
AutoNation’s revenue was mainly due to a 53% year-on-year increase in second-hand car sales, while new car sales were basically flat.
The company reported that the same-store gross profit for each new car reached a record US$5,484, an increase of US$2,949. According to the company, the gross profit per used car was US$2,104, a year-on-year increase of US$108 and a 51% increase compared to the third quarter of 2019.
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