Shares of AutoNation Inc.
AN,
rallied 1.9% toward a six-week high in premarket trading Thursday, after the new and used car seller missed first-quarter revenue expectations but beat on profit, amid strength in its used-vehicles business. Net income fell to $288.7 million from $362.1 million, while earnings per share increased to $6.02 from $5.78, as the weighted average number of shares outstanding dropped to 47.6 million from 62.6 million. That beat the FactSet EPS consensus of $5.74. Revenue fell 5.2% to $6.40 billion, below the FactSet consensus of $6.63 billion. New vehicle revenue rose 4% to $2.9 billion, while new vehicle gross profit per vehicle dropped 14.8% to $5,210. Used vehicle revenue fell 21% to $2.0 billion, but used vehicle gross profit per vehicle climbed 35.2% to $1,566. “Consumer demand for personal vehicle ownership remains strong, and AutoNation is meeting this demand through its sourcing capabilities, selection of vehicles, footprint, digital tools, core efficiencies, and business expansions,” said Chief Executive Officer Mike Manley. The stock has run up 27.1% year to date through Wednesday, while the S&P 500
SPX,
has gained 8.2%.
