Eagers Automotive shares soar on positive outlook
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More news: Shares in Eagers Automotive have soared in morning trade after the company delivered revenue that was better than expected by UBS analysts and made positive outlook comments for the full-year.
At 1:16pm AEST, the share price had lifted 12.8% and $25.44.
UBS analysts described said the result was “solid” and highlighted “generally positive outlook comments” for the second half of 2025. The analysts flagged that new vehicle revenue was 1% better than UBS expectations and used vehicle revenue was roughly 2% better than UBS expectations.
What they said: “Expect solid revenue upgrade, but [profit before tax] margin reductions (mainly gross margin driven) but still netting to upside for FY25 vs current,” UBS analysts said in a note.
Eagers first-half operating profit lifts 9.3% to $198m
The news: Car dealership group Eagers Automotive reported an 8.3% increase in first-half underlying operating profit to $197.7 million, after the company hit record half year revenue.
The numbers: The underlying profit before tax figure is up from $182.5 million in the prior corresponding period, and higher than market estimates of $191.8 million, according to Visible Alpha data.
First-half revenue was up 18.9% to $6.5 billion. That was higher than average forecasts of $6.06 billion.
The company also hit record earnings before interest, tax, depreciation, amortisation and impairment (EBITDAI) of $296.7 million, which is 11.6% higher than the $265.9 million reported in the first half of FY24.
The company declared an interim dividend of 24 cents per share, in line with last year's interim payout of 24 cents per share, but below consensus estimates of 28 cents per share.
The context: Record revenue was achieved through full period contributions from "recent large-scale acquisitions and continued rapid growth" in its retail joint venture. The company also said that its record EBITDAI was driven by growth in new vehicle market share and "disciplined cost management".
Eagers' pre-owned car business easyauto123 also posted "record first half performance" posted a 33% increase in profit before tax compared to the first half of 2024.
For the full-year, Eagers sees further revenue growth "beyond initial full year expectations" and "continued profitable growth" for easyauto123.
