AutoNation Profit Beats Estimates as New-Car Sales Rebound

  • Revenue from new-car sales jumped 11% in third quarter
  • Gross profit drop on vehicle sales offset by repair business

An AutoNation dealership in Las Vegas, Nevada.

Photographer: Bridget Bennett/Bloomberg
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AutoNation Inc., one of the biggest car dealership chains in the US, posted third-quarter profit and revenue that beat expectations on rising new car sales and growth in its aftermarket repair business.

On Friday, the company reported adjusted earnings of $5.54 a share for the period, topping the $5.47 average estimate of analysts. Revenue rose to $6.9 billion, compared with the $6.68 billion projected by Wall Street.