12:49 PM EDT, 04/26/2024 (MT Newswires) -- Shares of AutoNation ( AN ) soared intraday Friday after the auto retailer reported mixed fiscal first-quarter results with new vehicle revenue rising year over year despite lower prices while used car sales dropped.

Revenue increased to $6.49 billion for the three months ended March 31 from $6.40 billion a year ago but missed the $6.51 billion average analyst estimate on Capital IQ.

Adjusted earnings per share declined to $4.49 from $6.07 but beat the Street's view of $4.26. Shares of AutoNation ( AN ) jumped 10% in midday trade.

"Consumer demand for vehicles in the first quarter was robust," AutoNation ( AN ) Chief Executive Mike Manley told analysts on a conference call, according to a Capital IQ transcript. "And in fact, this is the first time we had a quarterly increase in both new and used vehicle sales since the second quarter of 2021."

New vehicle revenue advanced 1.6% year over year to $2.98 billion despite a 5% decrease in average selling prices, according to Manley. After-sales revenue climbed 8% to $1.17 billion.

Calling new vehicles the "flywheel" to AutoNation's ( AN ) various revenue streams, Manley told analysts that the new vehicle supply chain is in the final stages of recovery and the company's inventory is nearing normalized levels.

Used vehicle revenue fell 1.8% on an annual basis to $2 billion in the first quarter while same-store units decreased 2%, according to Manley. Due to inventory alignment actions, used vehicle unit profitability improved in each month throughout the period, he said.

AutoNation's ( AN ) board authorized the repurchase of an additional $1 billion common shares. The company has repurchased $250 million of its shares this year as of Wednesday.

Price: 177.92, Change: +17.54, Percent Change: +10.94