Why the Eagers Automotive (ASX:APE) share price broke its all-time record today

The Eagers Automotive Ltd (ASX: APE) share price broke a new record today after the company announced a positive trading update and guidance.

| More on:
flying asx share price represented by cartoon car rocketing above all other cars on the road

Inage source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Eagers Automotive Ltd (ASX: APE) share price has broken a new record today. This comes after the company announced a positive trading update and guidance. At the time of writing, the automotive retailer's share price is up 5.9% to $13.89. At one point during morning trade, Eagers shares reached as high as $14.15 creating a new all-time high for the company.

What's moving the Eagers Automotive share price?

Investors are pushing the Eagers Automotive share price higher after digesting the latest news from the company.

In today's release, Eagers Automotive provided a market update and guidance for the 12 months ending 31 December 31 2020.

While COVID-19 begins to subside in Australia, the company advised it is seeing vehicle sales rebound strongly. This comes after Eagers Automotive experienced weak demand during the months of April and May when country-wide restrictions were in place.

The company said that customer orders continue to show an upward trajectory post COVID-19. In addition, the supply of overseas vehicles has started to return back to the Australian market. This was validated by a 12% increase in national vehicle deliveries during November recorded by VFACTS (based on statistics from the Federal Chamber of Automotive Industry).

Previously in the June quarter, global factory closures caused a halt in the delivery of vehicles.

Market guidance

In light of the above, Eagers Automotive expects to deliver an improved full-year result. Underlying operating profit before tax from its continuing operations are estimated to be in the range of $195 million to $205 million. This compares to the $100.4 million achieved in the prior corresponding period.

The strong outlook comes off the back of the company's first full-year of trading since merging with Automotive Holdings Group (AHG). Furthermore, Eagers Automotive's decision to reduce costs across the business during COVID-19 also helped deliver the robust result.

Eagers Automotive share price summary

The Eagers Automotive share price has been charging higher since the pandemic took the world by storm in March. Since this time, Eagers shares have more than quadrupled in value for the patient investors who held on to them.

The Eagers Automotive share price broke an all-time high record when it reached $14.15 today. The milestone achievement outpaces the S&P/ASX 200 Index (ASX: XJO) which is still 7% off reaching that feat.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors started the week off in a good mood today.

Read more »

A cute young girl with curly hair sips a glass of milk through a straw with a smile on her face.
Broker Notes

Up 37% this year, why Macquarie expects A2 Milk shares to keep outperforming

Macquarie remains bullish on A2 Milk shares heading into 2026. Let’s see why.

Read more »

Woman and man calculating a dividend yield.
Share Market News

Big week for markets: Here's what to watch

Tech earnings, rate speculation, and Aussie inflation data could shake markets this week — but long-term investors should keep their…

Read more »

ASX shares Business man marking buy on board and underlining it
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

dissapointed man at falling share price
Share Fallers

Why Boss Energy, Elsight, Pilbara Minerals, and Whitehaven Coal shares are falling today

These shares are starting the week in the red. But why?

Read more »

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them.
Broker Notes

Why Macquarie forecasts Northern Star shares are set to surge 55%

Macquarie believes Northern Star shares are well-placed to rocket higher.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Share Market News

ASX 200 tech stock near record high, is it still a buy?

This company's soaring share price and rising profits are turning heads.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Bellevue Gold, Bubs, Clarity Pharmaceuticals, and Regal Partners shares are rising today

These shares are starting the week on a positive note.

Read more »