Shares of AutoNation, Inc. (AN) fell 7.4% since the company reported second-quarter 2024 results. It reported adjusted earnings of $3.99 per share, which decreased 37% year over year and missed the Zacks Consensus Estimate of $4.31. In the second quarter, revenues amounted to $6.48 billion, which missed the Zacks Consensus Estimate of $6.76 billion and declined from $6.89 billion reported in the second quarter of 2023.Key TakeawaysIn the reported quarter, new vehicle revenues were down 4.8% year over year t ...

Investors have grown worried about the current state of the United States economy, especially now that the ISM Manufacturing PMI index has delivered a 21-month contraction. A reading of 46.8% for July makes it the worst reading in nearly two years. Markets figured that the promise of interest rate cuts from the Federal Reserve (the Fed) was insufficient to justify higher stock prices amid declining fundamentals.AutoNation TodayANAutoNation$183.98 -6.74 (-3.53%) 52-Week Range$123.81▼$197.18P/E Ratio8.72Price ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13107 AUTONATION, INC. (Exact name of registrant as specified in its charter) Delaware 73-1105145 (State or other jurisdiction of ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $6.48 billion, nearly identical to Q1 despite the CDK outage, but decreased 6% year-over-year due to normalization in vehicle selling prices [16][19] - Gross profit was $1.2 billion, representing 18% of revenue, and decreased 3% sequentially, reflecting productivity drag from the outage [17] - Adjusted net income was $163 million, down from $285 million a year ago, with adjusted EPS at $3.99 for the quarter [19] Business Line Data and Key Metrics Changes - New vehicle sales were down 2% for the quarter, with margins stabilizing at $3,108, a decline of $220 during the period [10][20] - Used vehicle sales decreased by 8% year-over-year on a same-store basis, with average selling prices moderating by 5% [22][23] - Customer Financial Services (CFS) saw a 10% drop in products sold per unit, but AN Finance originated over $240 million in loans, almost four times higher than the same quarter in 2023 [12][25] Market Data and Key Metrics Changes - New vehicle inventory levels were at 47,000 units at the end of June, representing 67 days of sales, up from 44 days at the end of Q1 [21] - Used vehicle inventory levels were at 30,000 units at the end of June, down 15% from a year ago, representing 34 days of sales [23] - The demand for lower-priced used vehicles remained strong, with total unit sales of vehicles priced under $20,000 increasing by 4% from a year ago [22] Company Strategy and Development Direction - The company aims to regain market share in the second half of the year, focusing on improving used vehicle sales and inventory turnover [15][31] - There is a commitment to enhancing the CFS model, which is expected to create long-term value despite short-term impacts on profitability [12][25] - The company plans to continue its capital allocation strategy, balancing share repurchases and potential acquisitions as market conditions normalize [29][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about vehicle demand and supply dynamics, expecting to recover any lost market share [30] - The operational impact of the CDK outage is now behind the company, and there is a focus on rebuilding momentum lost during the outage [71] - There are concerns about consumer affordability due to high vehicle prices and interest rates, but management believes there is still pent-up demand for new vehicles [68] Other Important Information - The company manually processed close to 60,000 repair orders during the CDK outage, which significantly slowed operations [9] - The technician workforce increased by 3% from a year ago, highlighting efforts to improve service effectiveness and retention [13] Q&A Session Summary Question: Reaction to $43 million paid during CDK disruption - Management noted significant gratitude and recognition from employees for the support provided during the outage [34][35] Question: Capital allocation strategy moving forward - Management emphasized a consistent approach to capital allocation focused on shareholder returns, with potential shifts based on market conditions [37][39] Question: Breakdown of parts and services growth - The 9% same-store growth in parts and services was attributed to increased service effectiveness and a focus on customer communication [42][43] Question: Long-term IT strategy post-CDK outage - Management is considering investments in redundancy and cybersecurity to mitigate future risks and improve operational continuity [46][49] Question: SG&A normalization expectations - Management expects SG&A percentages to remain elevated temporarily but anticipates improvements as productivity returns [54][56] Question: Outlook on PVRs and market dynamics - Management discussed ongoing internal discussions about PVRs, indicating moderation but not at the previously anticipated pace [58][62] Question: Stability in used vehicle profits and AutoNation USA growth - Management plans to pace the opening of new AutoNation USA stores, focusing on operational capacity and inventory sourcing [64][66] Question: Consumer affordability and auto credit concerns - Management acknowledged affordability challenges for consumers but noted manageable delinquency rates and a potential increase in leasing options [68][70]

AutoNation (AN) came out with quarterly earnings of $3.99 per share, missing the Zacks Consensus Estimate of $4.31 per share. This compares to earnings of $6.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.42%. A quarter ago, it was expected that this auto retailer would post earnings of $4.45 per share when it actually produced earnings of $4.49, delivering a surprise of 0.90%.Over the last four quarters, the company ha ...

Exhibit 99.1 Investor Contact: Derek Fiebig (954) 769-2227 fiebigd@autonation.com Media Contact: Lisa Rhodes Ryans (954) 769-4120 publicrelations@autonation.com AutoNation Reports Second Quarter 2024 Results FORT LAUDERDALE, Fla., (July 31, 2024) — AutoNation, Inc. (NYSE: AN), today reported second quarter 2024 revenue of $6.5 billion, EPS of $3.20, and adjusted EPS of $3.99. Results for the second quarter 2024 were adversely impacted by the outage of AutoNation's dealer management system due to a cyber inc ...

Investment Thesis - AutoNation, Inc. is a leading player in the US automotive retail industry with a broad operational footprint including new and used vehicle sales, parts and service operations, and automotive finance and insurance products [4] - The company operates 347 new vehicle franchises from 251 stores across the US, focusing on the Sunbelt region and selling 32 different new vehicle brands [4] Financial Performance - AutoNation generates approximately $1.5 billion in free cash flow each quarter, with a return on invested capital (ROIC) exceeding 20% [5][39] - The company has a capital turnover of around 4.5x and an inventory turnover of approximately 7x, indicating strong operational efficiency [5][39] Competitive Advantages - AutoNation enjoys pricing advantages due to high sales volumes, lower operating costs, and better asset utilization, resulting in ROICs that are about 6 times higher than the median peer [6][7] - The company has a competitive advantage period estimated at 14.5 years, allowing it to sustain returns above 12% [14][15] Management and Capital Allocation - Management has been actively buying back stock, reducing the share count by approximately 36 million since FY'21, which reflects a strong commitment to returning capital to shareholders [16][22] - Despite generating significant free cash flow, only about 5% of net operating profit after tax (NOPAT) has been reinvested into the business, with the majority allocated to buybacks [16][20] Valuation Insights - The current valuation of AutoNation is approximately $214 per share, with a compound annual growth rate (CAGR) of 8-10% projected through FY'26 [5][31] - The stock is considered attractively valued at around 9x NOPAT, with a margin of safety of about 25% [25][39] Future Growth Potential - AutoNation's future growth opportunities are expected to warrant a higher valuation multiple, with potential expansion to around 15x NOPAT in favorable scenarios [27][29] - The company is projected to maintain steady revenue growth, with estimates indicating revenues of approximately $26 billion by Q1 FY'25 [40]

AutoNation, Inc. (AN) has lowered its second-quarter 2024 quarterly earnings forecast following a cyberattack on software provider CDK Global on Jun 19, 2024. The auto retailer cut its guidance for earnings per share (EPS) by $1.50 to $3.15-$3.30 for the three months ending Jun 30. Despite the negative impact of the CDK outage on AutoNation's business and productivity, the incident is not expected to have a significant impact on the company's overall financial condition or operations. The company has regain ...

AutoNation disclosed Monday its bottom line for the second quarter will show a negative impact from CDK Global’s recent widespread software outage. The vehicle retailer forecasted that the June outage to the auto dealer software provider’s systems will drag on its earnings to the tune of about $1.50 per share in the second quarter, poising it to report an estimated earnings per share (EPS) of $3.15 to $3.30, according to a filing AutoNation submitted Monday to the Securities and Exchange Commission (SEC)."T ...

Core Insights - AutoNation, Inc. will release its financial results for Q2 2024 on July 31, 2024, before market opens [1] - A conference call to discuss these results will take place on the same day at 9:00 a.m. Eastern Time [1] Company Overview - AutoNation is one of the largest automotive retailers in the U.S., providing a wide range of new and used vehicles, financing, parts, and maintenance services [2] - The company has raised over $40 million for cancer-related causes through its DRV PNK initiative, highlighting its commitment to community support [2] Additional Information - More information about AutoNation, its business, and operational results can be found on its official websites [3]