AutoNation Inc. shares rose 3.3% in Tuesday premarket trading after reporting record adjusted earnings in the first quarter following a loss in the same period in 2020. Net income totaled $239.4 million, or $2.85 per share, after a loss of $232.3 million, or $2.58 per share, last year. Results include gains of 7 cents per share from the sale of AutoNation’s remaining stake in Vroom. Adjusted EPS reached a record $2.79, up 207% from 91 cents last year and well ahead of the FactSet consensus for $1.88. Revenue of $5.90 billion was up from $4.67 billion last year and also ahead of the FactSet consensus for $5.04 billion. Same-store revenue rose 27%, with new vehicle same-store sales up 22% and used vehicle same-store sales up 28%. The FactSet consensus was for 10% growth overall. AutoNation has signed a deal with Peacock Automotive Group to acquire 11 stores and one collision center in Hilton Head and Columbia, SC, and Savannah, GA. AutoNation has set a goal of 1 million new and pre-owned vehicles annually. The latest acquisition will bring AutoNation’s total footprint in the U.S. to 325 locations. AutoNation stock has gained 39.8% for the year to date, outpacing the S&P 500 index , which is up 10.8% for the period.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
