Why the Autosports (ASX:ASG) share price just smashed its 52-week high

The Autosports share price is speeding to a 52-week high today as the company recently released a half year update.

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 Autosports Group Ltd (ASX: ASG) share price has had a massive few days, trading up 18% since releasing a positive half year update last Thursday.

Shares in the automotive retailer have continued their climb today, trading 13.58% higher and peaking at a 52-week high of $1.84.

Fast recovery

It seems the Autosports share price isn't the only thing making a speedy recovery. The Australian new car market overall has continued to recover faster than expected over recent months.

According to Vfacts industry data, November saw the overall new car market grow 12.4% higher than the same month in 2019. December 2020 saw this growth continue, up 13.5% on December 2019.

The improved market conditions have been supported with the group's improving gross margins. This is despite the impact of the stage 4 COVID-19 lockdown in Victoria late last year.

Improved results

The Autosports share price is rising today as the company updated the market on some of its upcoming results.

On a preliminary basis, the company expects that the total revenue for the half year will be approximately $905 million, up 8.2% from the prior corresponding period.

Normalised net profit before tax is expected to fall in the range of $28.5 to $29.5 million. However, this excludes the impact of the costs associated with acquisitions and closed businesses. The impact of the Victoria lockdown on the company was about $7 million.

Nonetheless, the company received approximately $10.4m in Jobkeeper support on behalf of its employees during September 2020.

About the Autosports share price

Autosports is an automotive retailer that focuses on the sale of new and used motor vehicles, sale of aftermarket products and spare parts and motor vehicle servicing and collision repair services.

The company has 42 dealerships selling new and used cars while 3 are solely focused on used car sales. It also has 5 repair facilities.

The Autosports share price has gained 11.2% in the last 12 months, outpacing the 0.2% return of the All Ordinaries Index (ASX: XAO).

Motley Fool contributor Daniel Ewing 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

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »