APE +3.31%: the Australian & NZ auto dealership company saw shares trade higher today after a strong first-half update. Underlying pre-tax profit is expected to come in around $195m, around 5% above guidance provided in May of $183-189m. The car market has been struggling to get its hands on supply, so Eagers now has a record new car order book while cost-out programs are further supporting earnings. They completed the sale of Bill Buckle Auto as expected on 30 June, adding another $83m to their pile of cash which now stands at $326m. This balance sheet strength supports plans to buy back 10% of shares on issue over the next 12 months.
MM is bullish APE ~$11
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