(Reuters) -Lithia Motors Inc topped Wall Street estimates for first-quarter profit on Wednesday as the auto retailer benefited from strong demand and higher vehicle prices.
A global semiconductor chip shortage has created a supply crunch and forced automakers to raise prices, a move that is aiding earnings for the sector.
Lithia said its total vehicle gross profit per vehicle rose 18.7% to $4,392 in the quarter.
This results also come at a time when low-interest rates and a preference for private vehicles during the COVID-19 pandemic is also boosting sales.
The company said new vehicle retail sales jumped 59.7% in the quarter ended March 31, while used vehicle retail sales rose 54.6%.
Net income was $156.2 million, or $5.81 per share, in the quarter ended March 31, compared with $46.2 million, or $1.97 per share, a year earlier.
Total revenue surged 55% to $4.34 billion.
Excluding items, the company earned $5.89 per share, compared with a Refinitiv IBES estimate of $4.76.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Be the first to comment