CVNA - AutoNation accelerates on big earnings beat

AutoNation (NYSE:AN) is driving higher ahead of the market open after reporting a big beat on top and bottom lines in its Thursday morning earnings release. The auto retailer cruised past EPS estimates set by analysts at $5.78 by $0.53, while besting revenue expectations of $6.75 billion by $240 million. Shares gained almost 4% shortly before Thursday's open. The Florida-based retailer noted that consumer demand for vehicles remains robust even as inflation takes a toll. While new vehicle revenue declined slightly year over year, a 47% increase in used care revenue counteracted that headwind. “Our After-Sales team delivered a tremendous quarter with an increase in After-Sales gross profit of 19%,” CEO Mike Manley added. “Consumer demand for personal vehicle ownership remains strong and our self-sustaining used vehicle business continues to meet this demand through our sourcing capabilities, selection of vehicles, footprint, digital tools, and core efficiencies.” The company noted that it

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AutoNation accelerates on big earnings beat