AutoNation Inc.'s second-quarter results were buoyed by higher per-vehicle profits, record finance and insurance profit per vehicle and improved same-store used sales, despite a continued decline in new-vehicle sales.
The nation's largest new-vehicle retailer, in a statement Monday, said net income from continuing operations rose 3.7 percent to $101 million, while revenue dipped slightly to $5.34 billion. While new-vehicle revenue fell, AutoNation posted revenue gains in used vehicles, parts and service and F&I.
"We had an excellent quarter," Executive Chairman Mike Jackson told Automotive News.
AutoNation also named CFO Cheryl Miller as CEO on Monday in a surprise announcement. Her appointment came just four months after the auto retailer named industry outsider Carl Liebert to take over as CEO for Jackson.
Miller said AutoNation's results in the quarter were driven by a 10 percent jump in same-store new-vehicle profit per vehicle to $1,764, same-store F&I profit per vehicle retailed rising 7 percent to $1,926 and a 7 percent increase in same-store parts and service profit.
AutoNation shares surged 11.1 percent to close the day at $46.61. Results were released a day before scheduled and after the market closed.
AutoNation stock is largely held by Bill Gates, the Microsoft co-founder and one of the world's richest men who has been a top shareholder in AutoNation for more than a decade, and Eddie Lampert, the former Sears Holdings Corp. CEO, who recently increased his stake in the retailer, according to MarketWatch.
Records: Second-quarter earnings per share from continuing operations of $1.12 and same-store F&I profit per vehicle retailed of $1,926.
Sales: New-vehicle sales fell 11 percent to 70,516. That compares with a 1.7 percent drop in new light-vehicle sales across the U.S. during the second quarter, according to the Automotive News Data Center. Used-vehicle sales increased 3.8 percent to 62,339.
Same-store sales: New-vehicle sales fell 9.8 percent to 69,827 and used-vehicle sales increased 4.5 percent to 61,665.
AutoNation, of Fort Lauderdale, Fla., ranks No. 1 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 310,839 new vehicles in 2018. It retailed 237,722 used vehicles for the same period, ranking it No. 3 on Automotive News' list of the top 100 dealership groups in used-vehicle sales.
Jamie Butters contributed to this report.