AutoNation’s inventory reached a brand new all-time file of greater than $130 a share Thursday after the nation’s largest vendor of latest automobiles reported its sixth consecutive quarterly earnings file.

AutoNation beat Wall Road’s revenue and gross sales estimates, led by resilient client demand outpacing car provides on account of an ongoing international scarcity of semiconductor chips that has resulted in file automotive costs and income.

Shares of the Florida-based dealership group jumped by as a lot as 12% Thursday morning earlier than retreating to about $124 a share, up by about 6%. AutoNation’s inventory is up by practically 70% to date this 12 months.

The corporate reported adjusted earnings per share of $5.12 within the third quarter – an all-time file – beating analysts’ estimates of $4.20 a share, based on Refinitiv. AutoNation’s income for the quarter jumped by18% to $6.38 billion in contrast with estimates of $6.31 billion.

AutoNation reported web earnings of $361.7 million, virtually double the $182.6 million in revenue it generated a 12 months earlier.

“We’re pre-selling what’s being scheduled to be produced,” AutoNation CEO Mike Jackson stated Thursday throughout CNBC’s “Squawk Field.” “They’re coming in and going proper out … the demand is there.”

Along with the file earnings, AutoNation additionally introduced an acquisition that is anticipated to generate about $420 million in annual income. The corporate’s board additionally authorised the repurchase of as much as $1 billion of AutoNation’s frequent inventory.

AutoNation beforehand stated it was repurchasing 7.9 million shares of frequent inventory, or 11% of shares excellent, for an mixture buy value of $879 million within the t

hird quarter.

AutoNation’s earnings had been led by a 53% improve in used car gross sales in comparison with a 12 months earlier, whereas new car gross sales had been roughly flat.

The corporate reported same-store new gross revenue per new car was a file $5,484, up $2,949. Gross revenue per used car was $2,104, up $108 from a 12 months earlier and 51% in comparison with the third quarter of 2019, based on the corporate.