) reported 11% year-over-year increase in sales to 26,372
vehicles in May 2013. The growth was mainly attributable to
strong sales of Premium Luxury vehicles.
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On same-store basis, retail new vehicle sales went up 8% to
25,566 units. May 2013 had 26 selling days; consistent with May
Sales in the Domestic segment jumped 14% to 8,287 vehicles. The
segment comprises retail automotive franchises that sell vehicles
Ford Motor Co.
), Chrysler and others.
Sales in the Import segment went up 7% to 13,181 vehicles. The
segment covers retail automotive franchises that sell vehicles
Toyota Motor Corp.
Honda Motor Co.
) and others.
Sales in the Premium Luxury segment surged 17% to 4,904 vehicles
during the month. The segment consists of retail automotive
franchises selling vehicles manufactured by Mercedes Benz, BMW,
Lexus and others.
Auto sales in the U.S. grew 8.2% to 1.44 million units in May
while it rose 10.9% to 15.3 million vehicles on a seasonally
adjusted rate (SAAR) basis. The year-over-year improvement was
attributable to continued macroeconomic recovery, increase in
aging vehicles on the U.S. roads and strong demand for commercial
It is expected that strong pent-up demand, easier car finance and
improving macroeconomic conditions will continue to act as a
catalyst to rejuvenate U.S. auto sales to the pre-recession
Based in Fort Lauderdale, Fla, AutoNation is the largest
automotive retailer in the U.S. The company owns and operates
about 265 new vehicle franchises that sell 32 brands located in
the major metropolitan markets across 15 states.
AutoNation posted a 21.4% rise in earnings per share to 68 cents
in the first quarter of 2013 from 56 cents in the same quarter of
2012, topping the Zacks Consensus Estimate by 5 cents.
Revenues increased 10.8% to $4.1 billion, slightly ahead of the
Zacks Consensus Estimate of $4.0 billion. The revenue growth was
mainly attributable to strong new vehicle sales during the
quarter. The company retains a Zacks Rank #2 (Buy).