AutoNation reported higher sales of new vehicles
Courtesy of AutoNation
AutoNation reported record fourth-quarter profit, partly benefiting from higher prices of vehicles.
The company’s (ticker: AN) earnings showed an adjusted profit of $6.37 per share—its highest ever for a fourth quarter, which beat the consensus expectation of analysts tracked by
FactSet
of $5.83 per share. Revenue of $6.7 billion also beat an expected $6.5 billion, driven by “higher average selling prices of vehicles,” a press release from the company noted.
The rising cost of cars troubled consumers amid a period of higher inflation in the U.S.
As of January, prices of used cars in the U.S. were up about 2.5%, according to data information provider Manheim, which releases its used vehicle value index every month.
The stock was up about 3% to $145.47 in premarket trading.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com
Credit: marketwatch.com