(Reuters) -No. 1 U.S. auto retailer AutoNation Inc reported first-quarter results that topped Wall Street estimates on Thursday, boosted by robust demand for used vehicles as consumer preference for personal transportation remained high despite surging vehicle prices.
Shares of the company rose 4.6% to $110.70 in premarket trading.
Pandemic-induced demand for personal cars outpaced the supply of new vehicles, as automakers deal with tighter inventories, a semiconductor shortage and supply chain snarls.
A shortage of new car availability in the market has caused used cars sales to skyrocket.
Fort Lauderdale-based AutoNation said sales of used vehicles surged 47%, while retail unit sales of new vehicles fell 6% in the quarter due to a shortage of supply.
The company added that incoming new vehicle inventory, for the most part, has been pre-ordered by customers.
AutoNation’s Parts and Services segment, which provides automotive repair and maintenance services, reported revenue of $1 billion, up 18% from last year.
Excluding items, the company reported adjusted diluted earnings per share of $5.78, beating estimates of $5.25 per share, according to Refinitiv IBES data.
AutoNation’s net income was $362.1 million, or $5.78 per share, for the quarter ended March 31, compared with $239.4 million, or $2.85 per share, a year earlier.
Revenue rose 14.4% to $6.75 billion, above estimates of $6.48 billion.
(Reporting by Ashwini Raj in Bengaluru; Editing by Amy Caren Daniel)