AutoNation Rises After Fourth-Quarter Earnings Beat

AutoNation shares were higher after the car dealer reported better-than-expected fourth-quarter earnings.
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Shares of AutoNation  (AN) - Get Report were rising Tuesday after the car dealer reported better-than-expected fourth-quarter earnings.

Shares of the Fort Lauderdale, Fla. company rose 2.37% to $80.25 at the last check during trading. AutoNation shares have gained 65% over the past year.

The automotive retailer posted adjusted earnings of $2.43 a share on revenue of $5.79 billion, compared to analyst estimates of earnings of $2.01 a share and revenue of $5.56 billion.

During the fourth quarter ended Dec. 31, AutoNation sold 3.1 million shares of its stake in Vroom for proceeds of $105 million and realized a cash gain of $78 million. 

In 2021, AutoNation said it sold its remaining stake in Vroom for proceeds of $109 million and realized a cash gain of $87 million. In total, the company realized a cash gain of $165 million from its investment.

Vroom is the New York car dealer enabling consumers to finance and buy vehicles online and have them delivered.

Gross profit per vehicle at AutoNation rose 50% to $2775 from $919, the company said.

AutoNation said it plans to build over 100 pre-owned vehicle stores, with over 50 completed by the end of 2025 in the U.S.

In 2021, AutoNation plans to open five stores in the U.S. in Austin, Denver (2 stores), Phoenix, and San Antonio. 

The company said it will add 10 new stores by the end of 2022.

AutoNation has a long-term goal of retailing more than 1 million combined new and used vehicle units per year.

Earlier this month, Autonation announced the AutoNation Express experience. It will provide customers with a seamless and intuitive omnichannel vehicle shopping and purchase experience for its locations.