By Kimberly Chin
AutoNation Inc.'s profit rose in the third quarter, driven by an 18% increase in revenue as consumer demand for vehicles continued to grow.
The automotive retailer's profit was $361.7 million, up from $182.6 million in the same period a year earlier. Earnings were $5.12 a share on a GAAP and adjusted basis. Analysts were expecting a profit of $4.21 a share, or $4.20 a share, as adjusted, according to a FactSet poll.
Revenue rose to $6.38 billion from $5.4 billion a year ago. Analysts were targeting $6.29 billion in revenue.
Low production volume of new vehicles was constraining inventory levels, leading customers to buy more pre-owned vehicles, the company said.
AutoNation saw a 53% increase in same-store revenue for used vehicles compared with the previous year. By comparison, same-store revenue for new vehicles was flat year over year.
Write to Kimberly Chin at email@example.com
(END) Dow Jones Newswires