AutoNation Lifts First-Quarter Profit Forecast

AutoNation Inc. increased its profit forecast for the first quarter, a sign that the auto retailer is seeing continued gradual improvement from the bottom of the recession, The Wall Street Journal reported.

The company, which is based in Fort Lauderdale, Fla., said it now estimates it earned 32 cents to 35 cents a share during the quarter, up from the forecast of 29 cents to 32 cents it gave last month. It said its estimates for revenue and new- and used-vehicle sales are unchanged from the previous forecast.

The company, like many auto retailers—and especially ones that sell used cars—has seen its results improve in recent quarters as the U.S. recovers from the recession and consumers start to crack open their wallets. In February, AutoNation reported higher fourth-quarter revenue and new-vehicle sales, though profit fell, mainly because of higher income taxes.

Shares of AutoNation were up 41 cents, or 2.3%, at $18.45 Tuesday in midday trading on the New York Stock Exchange. As of Monday's close, the stock had risen 18% in the past year.