AutoNation Beats Q1 Expectations, Shares Rise

Shares of

rose more than 2 percent in pre-market trading after the company reported stronger-than-expected earnings for the first quarter. The Fort Lauderdale, Florida-based company posted quarterly net income of $111.5 million, or $0.97 per share, compared to $95.1 million, or $0.78 per share, in the year-ago period. Its revenue rose 13 percent year-over-year to $4.94 billion. However, analysts were expecting earnings of $0.89 per share on revenue of $4.84 billion. New- vehicle retail sales gained 9 percent on a same-store basis, while used-car sales gained 11 percent. Domestic segment income rose 24 percent year-over-year to $79 million in the first quarter. Import segment income climbed 15 percent to $75 million, while Premium Luxury segment income surged 13 percent to $94 million. The average estimate among 6 Estimize users was for earnings of $0.90 per share and revenue of $4.82 billion. Mike Jackson, Chairman, Chief Executive Officer and President, said, "AutoNation delivered its 18th consecutive quarter of double-digit year-over-year growth in EPS as we increased profitability in each of our business sectors." Mr. Jackson added, "We continue to expect U.S. industry new vehicle unit sales above 17 million in 2015." AutoNation shares rose 2.47 percent to $66.50 in pre-market trading.