AutoNation posted fourth quarter earnings that exceeded analysts’ expectations.
The automotive retailer’s adjusted earnings came in at $2.43 a share, well above analysts’ forecast of $2.01 a share.
Revenue of $5.79 billion, also beat analysts’ expectations of $5.56 billion.
Gross profit per vehicle at AutoNation increased +50% to $2775 from $919, the company said.
During the fourth quarter, AutoNation sold 3.1 million shares of its holding in Vroom for proceeds of $105 million; it realized a cash gain of $78 million. The company sold its remaining stake in Vroom for proceeds of $109 million and realized a cash gain of $87 million in 2021. So, the company realized a total cash gain of $165 million from this investment.
AutoNation plans to open five stores in the U.S. in Austin, Denver (2 stores), Phoenix, and San Antonio this year. It said it will add 10 new stores by the end of 2022.
In the long-term, AutoNation aims to retail more than 1 million combined new and used vehicle units per year.