Reuters Lithia Motors Inc topped Wall Street estimates for firstquarter 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 lowinterest rates and a preference for private vehicles during the COVID19 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.
Reporting by Sanjana Shivdas and Ankit Ajmera in Bengaluru; Editing by Krishna Chandra Eluri and Aditya Soni