AutoNation Inc reported a better-than-expected quarterly profit on Tuesday, as higher demand for used vehicles helped the largest U.S. auto retail chain offset declines in new vehicle sales.
The results come three months after the Fort Lauderdale, Florida-based company replaced its chief executive for the second time in July.
AutoNation’s profits have been under pressure as U.S. new vehicle sales have weakened after showing strong growth since the end of the financial crisis of 2008.
The company has been focusing on expanding offerings such as branded car parts and services, and finance and insurance products to boost profitability.
New vehicle sales were down 6.4% to 74,190 units during the third quarter, while used vehicle volumes grew 5.2% to 63,581 units.
The company’s earnings per share from continuing operations fell to $1.11 from $1.24, beating the average analyst estimate of $1.05, according to IBES data from Refinitiv.
AutoNation in August warned it expected severance and other expenses paid to Liebert to “adversely impact” third-quarter earnings by an estimated 11 cents to 12 cents.
Total revenue rose 2.1% to $5.46 billion.