AutoNation results beat estimates on growing demand for used cars

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People look at vehicles for sale at the AutoNation dealership lot in Cerritos, California December 9, 2015. REUTERS/Mario Anzuoni/File Photo

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April 21 (Reuters) – No.1 U.S. auto retailer AutoNation Inc (AN.N) reported first-quarter results on Thursday that beat Wall Street estimates, boosted by strong demand for used vehicles, preference of consumers for personal transport remaining high despite the increase in vehicles. prices.

Shares of the company rose 4.6% to $110.70 in premarket trading.

Pandemic-induced demand for personal cars has outpaced supply of new vehicles as automakers face tighter inventories, semiconductor shortages and supply chain issues.

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A shortage of new cars available on the market has caused used car sales to skyrocket.

Fort Lauderdale-based AutoNation said used-vehicle sales jumped 47%, while new-vehicle retail unit sales fell 6% in the quarter due to a shortage of supply.

The company added that incoming new vehicle inventory, for the most part, has been pre-ordered by customers.

AutoNation’s Parts and Services segment, which provides automotive repair and maintenance services, reported revenue of $1 billion, up 18% from a year ago.

Excluding items, the company reported adjusted diluted earnings per share of $5.78, beating estimates of $5.25 per share, according to Refinitiv IBES data.

AutoNation’s net income was $362.1 million, or $5.78 per share, for the quarter ended March 31, compared with $239.4 million, or $2.85 per share, one year earlier.

Revenue rose 14.4% to $6.75 billion, above estimates of $6.48 billion.

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Reporting by Ashwini Raj in Bengaluru; Editing by Amy Caren Daniel

Our standards: The Thomson Reuters Trust Principles.

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