Guess which high-yielding ASX 200 stock just rocketed 22% on record revenue

Investors are sending the ASX 200 stock flying higher on Thursday. But why?

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The S&P/ASX 200 Index (ASX: XJO) is up 0.6% today, with plenty of help from this soaring ASX 200 stock.

The outperforming company in question is Eagers Automotive Ltd (ASX: APE).

Shares in the automotive retail group closed yesterday trading for $12.45. In morning trade on Thursday, shares are changing hands for $15.22 apiece, up 22.3%.

This strong performance follows the release of Eagers' full-year 2024 results, which have clearly exceeded market expectations.

Here's what's happening.

Photo of a happy couple with their new car and car keys.

Image Source: Getty Images

ASX 200 stock soars on record results

  • Record full-year revenue of $11.2 billion, up 13.6% from 2023
  • Underlying operating profit before tax of $371 million, down 14.3% year on year
  • Record underlying earnings before interest, taxes, depreciation, amortisation and net investment income (EBITDAI) of $550 million, up 0.8% from 2023
  • Fully franked final dividend of 50 cents per share, matching the record final dividend of 2023

What else did Eagers report?

In other core financial metrics for 2024, the ASX 200 stock reported a $288 million increase in its owned property over the year, to $885 million.

As for the company's balance sheet, Eagers had $774 million of total liquidity available as at 31 December.

Eagers said its record earnings and revenue results were driven by balanced contributions from its organic, greenfield, and acquisition initiatives over the year.

Also setting a new record was the company's productivity level. Eagers pointed to the benefits achieved from its transformed business model as increasing its productivity levels by more than 50% over the last four years.

The fully franked 50 cent per share dividend represents an instant 3.3% yield at current prices. If you'd like to grab that passive income payout, you'll need to own shares at market close on 26 March. The ASX 200 stock trades ex-dividend on 27 March.

Inclusive of the interim dividend, Eagers shares trade on a trailing yield of 4.9%.

What did management say?

Commenting on the results sending the ASX 200 stock soaring today, Eagers CEO Keith Thornton said:

This 2024 result, and more specifically our second half performance, demonstrates the resilient nature of the core Eagers business, which is outperforming benchmarks and benefitting from a multi-year productivity focus.

Thornton added that the record revenue results were "underpinned by very strong contributions from our core Franchised Auto business and a record performance from easyauto123".

What's next for the ASX 200 stock?

Looking at what could impact the ASX 200 stock in the months ahead, Eagers forecasts 2025 will mark a third consecutive year of growth, with revenue expected to increase by another $1.0 billion. This would see the company achieve more than $12 billion in annual sales.

Eagers also flagged potential further improvements of its net margins. And the company said profits could improve in 2025 as its recent acquisitions are more thoroughly integrated.

"We see no shortage of growth possibilities. The industry is consolidating and continuing to evolve at an unprecedented pace," Thornton said.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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