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.
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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.
