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Investing.com — The car market is back with a vengeance, and so is AutoNation (NYSE:AN).
The country’s largest auto dealer chain posted record profit in the third quarter, pulling in adjusted earnings per share of $2.38 on revenue of $5.4 billion. Both numbers topped consensus of $1.65 and $5.19 billion, respectively.
Shares jumped as much as 10% before halving those gains as the broader market pulled back.
“It’s our absolute best quarter ever,” Chief Executive Officer Mike Jackson said on CNBC. “The demand for individual mobility has gone through the roof, and I think this pandemic/shelter in place has shifted the American psyche in a long-term way, and it’s hard to predict past five years, but for the next three to five years, there’s been a shift in demand,” he added.
Jackson pointed to increased demand for both new and used vehicles, and noted that low interest rates are making car-buying more attractive.
Along with the rebound in car sales, AutoNation was able to keep costs under control. The company said SG&A as a percentage of gross profit came in at 64.4%, which was an 800 basis-point improvement over the same period a year ago.
