![AutoNation revenue and profit beats estimates despite drop in used car unit sales](https://i-invdn-com.investing.com/news/LYNXNPEE4N2CD_L.jpg)
Investing.com — AutoNation (NYSE:), one of many largest automobile dealership chains within the U.S., has reported better-than-expected adjusted earnings per share and income for the second quarter, due to sturdy demand for brand new autos that helped counterbalance a decline in gross sales of used vehicles.
Demand for used autos spiked in the course of the pandemic however has since slipped as provide chains eased and automakers have been capable of begin rolling out new fashions.
Because of this, Florida-based AutoNation noticed new automobile retail unit gross sales climb by 8% yearly within the three months ended June 30 to 62,444, whereas used automobile retail unit gross sales dipped by 11% to 68,812.
After-sales income, which is generated from companies like pit stops and repairs, additionally grew to $1.1 billion, a rise of 11%.
Complete remained basically unchanged year-on-year at $6.9B however nonetheless topped Bloomberg consensus expectations of $6.75B.
In the meantime, adjusted diluted earnings per share beat estimates regardless of dipping by 3% to $6.29.
Talking to Reuters, chief govt Mike Manley mentioned that demand for autos within the U.S. is powerful as rising inventories contribute to costs dropping from COVID-era peaks. However Manley informed Reuters that, because of this development, “I do not assume you will see margins at pre-pandemic ranges this 12 months.”
Shares in AutoNation slumped in early U.S. buying and selling on Friday.