Market Mover | Eagers Automotive shares slide 13% on profit warning

May 22, 2024 - On Wednesday, shares of Australia’s largest car dealership group $Eagers Automotive Ltd(APE.AU)$ plunged by 13.54% following its warning that profits for 2024H1 are anticipated to be 15 per cent lower compared to the previous year.

According to the announcement, the total revenue of $Eagers Automotive Ltd(APE.AU)$ is up 18.3% for the first four months in 2024, and they are well on track to deliver over A$11 billion in total revenue for 2024.

However, $Eagers Automotive Ltd(APE.AU)$ anticipates that the underlying trading performance for 2024H1 will reach roughly 85% of the underlying pre-tax profit level recorded in the corresponding period of 2023 due to the cost of living pressures, high interest rates, and increasing business costs.