Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $7.2 billion, an increase of 7% year-over-year, and 8% on a same-store basis [28] - Gross profit was $1.24 billion, up 5% sequentially and 3% year-over-year on a same-store basis [29] - Adjusted net income was $199 million, compared to $216 million a year ago, with adjusted EPS at $4.97, five cents below Q4 2023 [33] Business Line Data and Key Metrics Changes - New vehicle sales saw a 12% same-store unit volume growth, with domestic segment sales up 17% and premium luxury segment sales up 12% [21][22] - Used vehicle gross profit increased by 14% year-over-year, driven by improved inventory management [22] - AutoNation Finance originated $1.1 billion in loans during 2024, with a portfolio now exceeding $1.1 billion and a delinquency rate of less than 3% [12][48] Market Data and Key Metrics Changes - Hybrid vehicle sales increased approximately 50% year-over-year, representing nearly 20% of unit sales, while battery electric vehicle sales rose over 25% [36] - New vehicle inventory at year-end was below 43,000 units, down from 46,000 units at the end of Q3 2024 [38] - After-sales gross profit increased by more than 5% year-over-year, achieving record gross profit for both Q4 and the full year [24][51] Company Strategy and Development Direction - The company plans to continue focusing on after-sales growth, technician recruitment, and retention, as well as enhancing customer financial services [65] - Capital allocation will prioritize high-return opportunities, including share repurchases and potential M&A activities [145][150] - The company divested eight stores that did not fit its model, allowing for capital redeployment into share repurchases [17][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about pent-up demand for new vehicles and anticipated moderate unit growth in early 2025, with expectations for stabilization in unit profitability [62][63] - The company expects continued resilience in customer financial services volumes and profitability, alongside a stable used car market [64] - Management acknowledged uncertainties in the economic environment and geopolitical factors but emphasized the company's ability to deliver strong results across various conditions [61][66] Other Important Information - The company repurchased approximately $100 million of shares during Q4 2024, bringing total share repurchases for the year to $460 million, representing a 7% reduction in shares outstanding [26][59] - AutoNation was recognized by Fortune magazine as one of the world's most admired companies for the eighth consecutive year [18] Q&A Session Summary Question: Impact of post-election consumer sentiment on sales - Management noted improved consumer sentiment post-election and expected this trend to continue into early 2025, with a strong exit rate in new vehicle sales [72][75] Question: OEMs' approach to EV inventory - Management indicated that OEMs are adjusting their strategies regarding EVs and hybrids, balancing inventory levels while recognizing the growing demand for hybrids [78][81] Question: Funding needs for AutoNation Finance - Management discussed the expected increase in nonrecourse financing for AutoNation Finance, projecting a growth in funding levels as the portfolio matures [94][97] Question: After-sales growth expectations - Management highlighted the focus on technician recruitment and the potential for mid-single-digit growth in after-sales, emphasizing the importance of customer retention [100][106] Question: SG&A improvements and future expectations - Management indicated that SG&A as a percentage of gross profit improved in Q4 2024, with expectations for modest improvements in 2025 as the company continues to drive growth [114][118] Question: Used vehicle margin stabilization - Management acknowledged that while used vehicle margins have moderated, they expect opportunities for growth in dollar terms rather than percentage terms due to market dynamics [132][134] Question: Collision business recovery - Management anticipated a seasonal recovery in the collision business as they move into spring, despite challenges faced in the previous year [138][140] Question: Capital allocation strategy - Management reiterated that capital allocation decisions will focus on maximizing shareholder returns, balancing between share repurchases and potential acquisitions [144][150]

Group 1 - AutoNation, Inc. (NYSE: AN) has shown strong performance over the past year, with a stock price increase of 24% and recently reaching a 52-week high [1] - The stock experienced a slight decline after the company reported solid Q4 results [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories in making investment decisions [1]

Core Insights - AutoNation reported $7.21 billion in revenue for Q4 2024, a year-over-year increase of 6.6% [1] - The EPS for the quarter was $4.97, slightly down from $5.02 a year ago, but exceeded the consensus estimate of $4.26 by 16.67% [1] - The revenue surpassed the Zacks Consensus Estimate of $6.64 billion by 8.56% [1] Financial Performance Metrics - Retail vehicle unit sales totaled 136,263, exceeding the average estimate of 128,985 [4] - Revenue per new vehicle retailed was $52,849, higher than the estimated $50,903.06 [4] - Revenue per used vehicle retailed was $27,119, compared to the average estimate of $25,965.63 [4] - Gross profit per vehicle retailed in finance and insurance was $2,686, slightly above the average estimate of $2,678.80 [4] - Retail vehicle unit sales for used vehicles were 64,829, slightly above the average estimate of 64,696 [4] Revenue Breakdown - Revenue from new vehicles was $3.78 billion, exceeding the average estimate of $3.29 billion, with a year-over-year change of 12.1% [4] - Revenue from used vehicles was $1.91 billion, surpassing the average estimate of $1.78 billion, with a year-over-year change of 0.3% [4] - Parts and service revenue was $1.15 billion, below the average estimate of $1.21 billion, with a year-over-year change of 1.1% [4] - Finance and insurance net revenue was $366 million, exceeding the average estimate of $345.62 million, with a year-over-year change of 5.4% [4] - Retail used vehicle revenue was $1.76 billion, above the estimated $1.62 billion, representing a year-over-year decline of 1.3% [4] - Wholesale used vehicle revenue was $153.20 million, surpassing the average estimate of $124.12 million, with a year-over-year change of 22.9% [4] Stock Performance - AutoNation shares returned +9.8% over the past month, outperforming the Zacks S&P 500 composite's +4.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Insights - AutoNation reported quarterly earnings of $4.97 per share, exceeding the Zacks Consensus Estimate of $4.26 per share, but down from $5.02 per share a year ago, representing an earnings surprise of 16.67% [1] - The company generated revenues of $7.21 billion for the quarter, surpassing the Zacks Consensus Estimate by 8.56% and increasing from $6.77 billion year-over-year [2] - AutoNation's stock has increased by approximately 13.4% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.30, with expected revenues of $6.35 billion, and for the current fiscal year, the EPS estimate is $18.33 on revenues of $26.55 billion [7] - The estimate revisions trend for AutoNation is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Automotive - Retail and Whole Sales industry is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Penske Automotive, is expected to report quarterly earnings of $3.37 per share, reflecting a year-over-year decline of 2.3%, with revenues anticipated to be $7.56 billion, up 4% from the previous year [9][10]

Fourth Quarter 2024 Earnings Release February 11, 2025 1 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as "anticipates," "expects," "estimates," "intends," "goals," "targets," "projects," "plans," "believes," ...

Financial Performance - Fourth quarter 2024 revenue reached $7.2 billion, an 8% increase year-over-year on a same-store basis[2] - EPS for Q4 2024 was $4.64, with adjusted EPS at $4.97, reflecting a decrease of 8% from the previous year[5] - Full year 2024 revenue totaled $26.8 billion, a slight decrease of 1% compared to 2023[10] - The company reported a net income of $692.2 million for the full year 2024, a 32% decrease from the previous year[10] - Total revenue for Q4 2024 reached $7,213.2 million, a 6.6% increase from $6,767.4 million in Q4 2023[27] - Net income for the twelve months ended December 31, 2024, was $692.2 million, down 32.2% from $1,021.1 million in 2023[27] - Diluted earnings per share for continuing operations decreased to $16.92 in 2024 from $22.72 in 2023, reflecting a 25.5% decline[27] - Adjusted net income for 2024 was $714.0 million, down from $1,032.8 million in 2023, representing a decrease of about 31%[41] - The adjusted diluted earnings per share for 2024 was $17.46, down from $23.00 in 2023[39] Vehicle Sales and Revenue - New vehicle same-store retail unit sales grew by 12% in Q4 2024, contributing to a 13% increase in new vehicle revenue to $3.8 billion[9] - New vehicle revenue increased to $3,775.2 million in Q4 2024, up 12.1% from $3,366.9 million in Q4 2023[27] - Retail vehicle unit sales increased by 6,364 units, totaling 136,263 units sold in Q4 2024, a growth of 4.9%[29] - Retail new vehicle unit sales increased by 10.3% to 71,434 units in Q4 2024, compared to 64,748 units in Q4 2023[32] - Retail used vehicle revenue decreased by $23.0 million, representing a decline of 1.3% compared to the previous year[29] - The company reported a decrease in retail used vehicle unit sales by 0.5% to 64,829 units in Q4 2024 compared to 65,151 units in Q4 2023[32] - Used vehicle retail unit sales slightly decreased by 0.8% to 63,330 units from 63,831 units year-over-year[43] Profitability and Expenses - Same-store gross profit for the full year 2024 decreased by 7% to $4.7 billion, with new vehicle gross profit down by 27%[14] - Gross profit for the twelve months ended December 31, 2024, was $4,785.4 million, a decrease of 6.7% compared to $5,131.5 million in 2023[27] - Total gross profit increased to $1,241.6 million, a rise of $26.4 million or 2.2% from Q4 2023[29] - New vehicle gross profit declined by 9.6% to $212.2 million from $234.7 million year-over-year[43] - Selling, general, and administrative expenses increased to $3,263.9 million in 2024, slightly up from $3,253.2 million in 2023[27] - SG&A expenses for Q4 2024 were $833.7 million, representing 67.1% of gross profit, compared to $808.3 million and 66.5% in Q4 2023[37] - SG&A expenses as a percentage of gross profit increased to 68.2% in 2024 from 63.4% in 2023[39] Financing and Liquidity - AutoNation Finance originated $1.1 billion in loans during 2024, enhancing its loan portfolio[6] - As of December 31, 2024, AutoNation had $1.3 billion in liquidity, with a leverage ratio of 2.4X[18] - The leverage ratio stood at 2.45x, well below the covenant limit of 3.75x, while the interest coverage ratio was 4.24x, exceeding the covenant requirement of 3.00x[35] - Non-recourse debt increased significantly to $826.0 million in 2024 from $258.4 million in 2023[35] - The company experienced an increase in auto loans receivable, net, amounting to $877.1 million in 2024, compared to $229.9 million in 2023[41] Future Outlook and Strategic Initiatives - The company anticipates continued focus on strategic acquisitions and digital capabilities to enhance market share and profitability[25] - Future performance expectations include navigating economic uncertainties such as inflation and consumer demand fluctuations[25] - The company plans to maintain expense controls and improve gross profit margins amid competitive pressures in the automotive retail industry[25]

Q4 2024 revenue up 8% on a same store basis; EPS $4.64 and adjusted EPS $4.97 New Vehicle same-store unit sales growth of 12% in Q4, with sequential unit profitability growth Used Vehicle same-store gross profit growth of 14% in Q4 After-Sales and CFS same-store gross profit growth of 5% and 6%, respectively in Q4 AN Finance originated $1.1 billion of loans during 2024 Share repurchases of $460 million in 2024 representing a 7% share reduction Continued strong balance sheet, leverage reduced sequentially t ...

Core Insights - AutoNation (AN) is expected to report quarterly earnings of $4.26 per share, reflecting a decline of 15.1% year-over-year, with revenues projected at $6.64 billion, down 1.8% from the previous year [1] Earnings Estimates and Revisions - Over the last 30 days, the consensus EPS estimate has been revised upward by 1.5%, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts project 'Revenue- Other' to reach $7.38 million, a 20.9% increase year-over-year [5] - 'Revenue- New Vehicle' is estimated at $3.29 billion, indicating a decrease of 2.2% from the prior year [5] - 'Revenue- Used Vehicle' is expected to be $1.78 billion, down 6.8% year-over-year [5] - The consensus estimate for 'Revenue- Parts and service' stands at $1.21 billion, reflecting a 5.9% increase from the previous year [6] Unit Sales and Profit Metrics - Total retail unit sales are forecasted to reach 128,985, up from 125,623 in the same quarter last year [6] - 'Revenue per Vehicle retailed - New Vehicle' is expected to be $50,903.06, down from $52,000 year-over-year [6] - 'Revenue per Vehicle retailed - Used Vehicle' is projected at $25,965.63, compared to $27,338 in the same quarter last year [7] - 'Gross profit per vehicle retailed - Finance and insurance' is estimated at $2,678.80, slightly up from $2,674 year-over-year [7] - 'Gross profit per Vehicle retailed - New Vehicle' is expected to be $2,553.97, down from $3,653 year-over-year [9] Market Performance - Over the past month, AutoNation shares have increased by 12.3%, outperforming the Zacks S&P 500 composite, which saw a 2.1% change [10] - AutoNation holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the upcoming period [10]

The market expects AutoNation (AN) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 11, 2025, might help the stock move higher if these key numbers are ...

Core Insights - AutoNation, Inc. has been recognized on Fortune's 2025 World's Most Admired Companies list, marking the eighth consecutive year of inclusion and the fifth year as the highest-ranked automotive retailer [1][2]. Company Performance - The recognition reflects AutoNation's ability to thrive in a competitive industry while positively impacting its associates, customers, and communities [1][2]. - The selection process involved a survey of 1,500 companies, with 3,380 respondents rating companies based on nine criteria, including management quality and social responsibility [3]. Community Commitment - AutoNation's CEO highlighted the company's commitment to delivering exceptional experiences and making a lasting difference, particularly through the DRV PNK initiative, which has raised over $40 million for cancer research and treatment [4][5].