AutoNation Inc. generated record revenue in the second quarter on higher vehicle margins, as new- and used-vehicle sales sharply increased from the pandemic-scarred period a year earlier.
The auto retail giant said Monday that its net income soared 38 percent to $384.8 million. Revenue surged 54 percent to $7 billion. The quarter a year earlier included a $161 million after-tax, noncash gain related to AutoNation’s investment in online used-vehicle retailer Vroom Inc.
“Demand continues to outpace supply for new vehicles,” CEO Mike Jackson said in a statement. “We expect this to continue into 2022 due to consumers’ preference for personal transportation coupled with lower interest rates.”
In April, AutoNation said it would expand its used vehicle-only AutoNation USA business from five stores to more than 130 by the end of 2026.
During the quarter, an AutoNation USA store opened in San Antonio, a new market. The company said the store was profitable in its first month.
Another four AutoNation USA stores are expected to open by year’s end, and 12 are slated to open in 2022.
AutoNation shares fell 0.5 percent to $102.02 in morning trading Monday in New York.
Records: Second-quarter revenue; second-quarter earnings per share from continuing operations of $4.83, up 52 percent; second-quarter same-store finance and insurance gross profit per vehicle of $2,342, up $167.
Sales: New-vehicle sales jumped 42 percent to 77,164. Used-vehicle sales increased 37 percent to 80,589.
Same-store sales: New-vehicle sales on a same-store basis also rose 42 percent, to 77,081. That is less than the 49 percent increase in U.S. new light-vehicle sales across the industry during the second quarter, according to the Automotive News Research & Data Center. Used-vehicle sales on a same-store basis increased 37 percent to 80,305.
AutoNation, of Fort Lauderdale, Fla., ranks No. 1 on Automotive News‘ list of the top 150 dealership groups based in the U.S., retailing 249,654 new vehicles in 2020. It retailed 241,182 used vehicles for the same period, ranking it No. 3 on Automotive News‘ list of the top 100 used-vehicle retailers.