- AutoNation Inc AN reported third-quarter FY21 sales growth of 18% year-on-year, to $6.38 billion, beating the analyst consensus of $6.31 million. Same-store revenue increased 18% from 3Q19.
- Same-store new vehicle revenue was flat versus the prior year and decreased 3% versus 3Q19. Same-store used vehicle revenue increased 53% versus last year and increased 67% versus 3Q19.
- Domestic segment income rose 33% Y/Y, Import segment sales grew 63% Y/Y, and Premium Luxury segment sales rose 43% Y/Y.
- Gross profit improved 29% Y/Y to $1.3 billion, and the gross profit margin expanded 190 basis points to 19.9%.
- Selling, general and administrative (SG&A) expenses were 56.9% of gross profit, 750 basis points improvement versus last year.
- The operating margin for the quarter was 7.9%, and operating income rose 85% Y/Y to $503.3 million.
- The adjusted net income from continuing operations nearly doubled to $361.7 million in the quarter. EPS from continuing operations of $5.12 beat the analyst consensus of $4.20.
- Cash and equivalents totaled $72 million as of September 30, 2021.
- AutoNation's Board had authorized the repurchase of up to an additional $1 billion of stock.
- "Demand continues to outpace supply for new vehicles. New vehicle sales are constrained by reduced production volume with low inventory levels. We expect this pent up demand to support sales for the foreseeable future," said CEO Mike Jackson.
- AutoNation also announced an agreement to acquire Priority 1 Automotive Group, representing approximately $420 million in annual revenue.
- Price action: AN shares are trading higher by 9.22% at $127.74 on the last check Thursday.
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