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Retail

AutoNation beats expectations with strong 3Q earnings

AutoNation, Inc. (NYSE:AN) reported 3Q earnings that showcased a solid performance despite the challenges posed by the COVID-19 pandemic and supply chain disruptions.

The company's after-sales gross profit and gross profit per vehicle sold increased, indicating strong demand for its products and services.

Revenue and earnings per share both came in ahead of expectations. Total revenue for the quarter was $6.9 billion, a 3% increase from $6.7 billion a year ago, while earnings per share (EPS) were $3.12, a 2.21% increase from $3.05 a year ago.

The consensus estimates were $6.67 billion for revenue and $5.42 for EPS, according to Zacks Investment Research.

AutoNation CEO, Mike Jackson, said in a statement that AutoNation's record third-quarter results demonstrate the strength of its business model.

“We continue to execute on our strategy of providing a peerless customer experience and driving operational excellence across our business."

Fort Lauderdale, Florida-based AutoNation is an automotive retailer that provides new and pre-owned vehicles and associated services, including sales, service, repair, parts, financing, and insurance.

Shares of the company gained 4% on Friday morning following the release of its 3Q results, trading at around $135.56.

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