What AutoNation's Earnings Mean for Automotive Suppliers
When the management of America's largest automotive retailer, AutoNation (NYSE: AN), speaks on the light-vehicle market, it's usually a good idea to listen. That especially applies for investors in automotive suppliers like 3M (NYSE: MMM), and it's also highly relevant for companies that have automakers as a key end market like Rockwell Automation (NYSE: ROK) and Cognex (NASDAQ: CGNX). So in that context, let's look at what AutoNation CEO Mike Jackson said about the auto retailer's recent results.
You don't need a degree in economics to understand that the interplay of supply and demand usually sets the price. And right now, there's no question that demand for new vehicles exceeds supply. As such, prices of new and used vehicles are higher -- great news for AutoNation's revenue and margins. A quick look at AutoNation's new and used vehicle sales and gross profit margin in the second quarter confirms this.
Same-Store Sales Q2 2021
Source Fool.com
