Profit at vehicle retailer AutoNation soars in second quarter as revenue hits record
AutoNation Inc. generated record second quarter revenues thanks to higher vehicle margins, as both new and used vehicle sales rose sharply from the pandemic period a year earlier.
The auto retail giant said Monday its net income had climbed 38% to $ 384.8 million. Revenue jumped 54% to $ 7 billion. The prior year quarter included a $ 161 million after-tax non-cash gain related to AutoNation’s investment in online used vehicle retailer Vroom Inc.
“Demand continues to exceed the supply of new vehicles”, CEO Mike Jackson said in a statement. “We expect this to continue through 2022 due to consumer preference for personal transportation coupled with lower interest rates.”
In April, AutoNation announced it would expand its pre-owned AutoNation USA business from five stores to more than 130 by the end of 2026.
During the quarter, a AutoNation USA store opens in San Antonio, a new market. The company said the store was profitable in its first month.
Four more AutoNation USA stores are expected to open by the end of the year, with 12 scheduled to open in 2022.
AutoNation Shares fell 0.7% to $ 101.92 in Monday morning trading in New York.
Recordings: Second quarter sales; second quarter earnings per share from continuing operations of $ 4.83, up 52%; Second quarter same store financing and insurance gross profit per vehicle of $ 2,342, up $ 167.
Sales: New vehicle sales jumped 42% to 77,164. Used vehicle sales increased 37% to 80,589.
Same store sales: Same-store new vehicle sales also rose 42%, to 77,081. This is less than the 49% increase in new light-duty vehicle sales in the United States across the industry over the course of the year. of the second quarter, according to the Automotive News Research & Data Center. Same-store used vehicle sales increased 37% to 80,305.
AutoNation, of Fort Lauderdale, Fla., Ranks # 1 on Automotive Newslist of the top 150 US-based dealer groups, retailing 249,654 new vehicles in 2020. It retailed 241,182 used vehicles for the same period, ranking it No. 3 on Automotive Newslist of the top 100 used vehicle retailers.