AutoNation Inc said it expects strong demand for new vehicles to continue next year as low interest rates and consumer preference for personal vehicles in the pandemic have helped the leading retailer US auto to beat quarterly profit estimates.
The company said Monday that sales of new and used vehicles rose 42% and 37% in the second quarter, respectively.
âConsumers buy vehicles before they even arrive in our stores. We expect the current environment of demand exceeding supply to continue into 2022,â said Managing Director Mike Jackson.
The global semiconductor chip shortage has depleted vehicle inventories and forced automakers to cut production, causing consumers to pay more for cars.
In its latest forecast for the auto industry released in June, JD power said the average price of a new vehicle is expected to hit a record high of $ 38,088 in the first half of 2021, up 10.1% from its previous year. a year ago. (https://bwnews.pr/3rrjBeP)
Fort Lauderdale, Fla.-Based AutoNation’s gross margin per new vehicle jumped 89% to $ 4,157 in the quarter ended June 30, while used-vehicle gross margin increased by 24 % to reach $ 2,240.
The company had 14 days of supply for new vehicles in the quarter, down from 49 a year earlier.
Adjusted net income from continuing operations was a record $ 4.83 per share, easily beating a Refinitv IBES estimate of $ 2.81. The record revenue of $ 6.98 billion was also higher than expected.
The company had $ 1.6 billion in cash as of June 30 and said its board of directors authorized a $ 1 billion share buyback.
AutoNation also said it is on track to open four new stores in the United States in the second half of the year and 12 new stores in 2022.