Core Insights - AutoNation has lowered its second-quarter EPS guidance by approximately $1.50 per share due to a cyberattack on CDK Global, a software provider for car dealerships [1][2] - The revised EPS guidance is now projected to be in the range of $3.15 to $3.30, excluding any potential recoveries related to the cyber incident [1] - AutoNation has restored access to its dealer management system and core functions, but certain ancillary systems remain sidelined, with full restoration expected by the end of July [2] Financial Impact - The cyberattack on CDK Global, which services around 15,000 car dealerships including AutoNation, has led to the earnings guidance revision [1] - Despite the downward revision, AutoNation's shares increased by over 3% to $176.16, reflecting a year-to-date increase of approximately 17% [2] Operational Status - AutoNation has indicated that while the full impact of the cyberattack is still being assessed, it does not expect a material effect on its overall financial condition or ongoing operational results [2]

Core Insights - The cyberattack on CDK Global has significantly impacted AutoNation's second quarter earnings, with a projected loss of $1.50 per share due to ongoing system restoration efforts [1][2] - CDK Global's dealership management system was compromised, affecting approximately 15,000 car dealerships and forcing them to revert to manual processes for various operations [2] - The cyberattack is part of a broader trend of increasing cyber threats, with a notable rise in incidents reported in the connected economy [3] Group 1: Impact on AutoNation - AutoNation has warned that the cyberattack will affect its earnings by $1.50 per share in the second quarter [1] - The company is still dealing with the aftermath of the hack, with certain systems and integrations remaining unavailable or limited [1] - Restoration of all affected systems is expected to be completed by the end of July 2024, but the company does not anticipate a material impact on its business from the current limitations [1] Group 2: CDK Global's Cyberattack - CDK Global's dealership management system was taken offline due to cyberattacks in mid-June, impacting around 15,000 dealerships [2] - Dealerships were unable to perform essential functions such as credit checks, generating auto loans, and completing sales contracts, forcing them to use manual methods [2] - The cyberattack is linked to a Russia-backed group involved in multiple extortion attempts, highlighting the increasing frequency of cyber threats [2] Group 3: Broader Cybersecurity Context - The incident with CDK Global is part of a larger trend referred to as the "year of the cyberattack," with new hacks emerging regularly [2] - AT&T also reported a significant data breach affecting nearly all its customers, emphasizing the growing concerns around data security in connected environments [3] - The rise in cyberattacks raises questions about vulnerabilities in connected workplaces and smart homes, where personal data is increasingly at risk [3]

FORT LAUDERDALE, Fla., July 11, 2024 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), a provider of personalized transportation services and America's most admired automotive retailer, today announced that its Board of Directors appointed Claire Bennett to the AutoNation Board, effective July 8, 2024. Ms. Bennett will serve as an independent director."We are pleased to have Claire join the AutoNation Board," said Rick Burdick, AutoNation's Board Chairman. "We look forward to the experience and insight she will ...

There are three main drivers of a stock’s return: growth, the change in price-to-earnings (P/E) multiple and capital return. While investors often focus on the growth angle, an upward rating in multiple can also be a significant return driver for bargain stocks.The following three bargain stocks have millionaire-maker potential. First, their forward P/E multiple reflects a 30% discount to the S&P 500’s valuation despite their solid growth prospects. If their P/E ratio matches the market’s multiple, these st ...

Industry Overview - The Zacks Auto Retail and Wholesale industry is experiencing a subdued outlook due to slowing vehicle sales growth, as much of the pent-up demand was absorbed in 2023 [1] - The industry relies on its retail and wholesale network for various tasks, including the sale of new and used vehicles, auto parts, and vehicle financing [2] - The automotive sector is consumer cyclical, heavily influenced by economic conditions and disposable income levels [2] Key Themes - High vehicle financing costs are causing affordability concerns, with the Federal Reserve maintaining a key overnight interest rate at a 23-year high since July 2023, which is expected to remain elevated until inflation stabilizes [3] - Slower-than-expected adoption of electric vehicles (EVs) is hindering sales growth, with high prices and consumer hesitancy affecting market dynamics [4] - Declining vehicle margins are evident, with inventory levels exceeding 2.6 million vehicles and average incentives per vehicle rising 81% from April 2023 to $3,087 [5] Investor-Friendly Moves - Despite broader market concerns, many industry participants are focused on returning value to shareholders through buybacks and dividends, benefiting from acquisitions and store expansions [5] Industry Ranking and Performance - The Zacks Auto Retail & Wholesale industry currently holds a Zacks Industry Rank of 222, placing it in the bottom 11% of around 250 Zacks industries, indicating negative near-term prospects [6][7] - The industry has underperformed the S&P 500, gaining 8.8% over the past year compared to the S&P 500's growth of 26.2% [8] Valuation Metrics - The industry is trading at a trailing 12-month EV/EBITDA ratio of 6.77X, significantly lower than the S&P 500's 14.65X and the sector's 14.49X [9] Company Highlights - **Rush Enterprises**: A leading provider in the commercial vehicle industry, known for its extensive network of dealerships. The company has shown strong growth in aftermarket demand and has increased its payout seven times in the last five years, with an average annualized growth rate of 30.4% [11][12] - **AutoNation**: One of the largest automotive retailers in the U.S., with a diversified product mix and a focus on digital solutions. The company has authorized an additional $1 billion in shares for its repurchase program [13][14]

Companies frequently employ stock buybacks or share repurchase programs to bolster shareholder value. These initiatives involve firms purchasing their own outstanding shares. This effectively consolidates ownership and reallocates profits among fewer shares, potentially boosting earnings per share and shareholder returns. Such buybacks are often seen as a prudent use of extra cash, especially when a company's stock is undervalued. By resorting to share buybacks, companies signal confidence in their financia ...

AutoNation, Inc. (AN) reported first-quarter 2024 adjusted earnings of $4.49 per share, which decreased 25.7% year over year but topped the Zacks Consensus Estimate of $4.45. This outperformance can be primarily attributed to higher-than-expected gross profit from the sale of new vehicles and wholesale used vehicles. In the reported quarter, revenues amounted to $6.48 billion, falling short of the Zacks Consensus Estimate of $6.49 billion but increasing from $6.39 billion in the first quarter of 2023.Key Ta ...

(Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended March 31, 2024 FORM 10-Q 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 ...

AutoNation, Inc. (NYSE:AN) Q1 2024 Earnings Conference Call April 26, 2024 9:00 AM ET Company Participants Derek Fiebig - Vice President of Investor Relations Michael Manley - Chief Executive Officer Thomas Szlosek - Chief Financial Officer Conference Call Participants John Murphy - Bank of America Rajat Gupta - JPMorgan Bret Jordan - Jefferies Douglas Dutton - Evercore Colin Langan - Wells Fargo Operator Welcome to the AutoNation First Quarter 2024 Conference Call. My name is Carla, and I will be coordinat ...

AutoNation (AN) reported $6.49 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 1.4%. EPS of $4.49 for the same period compares to $6.05 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $6.5 billion, representing a surprise of -0.15%. The company delivered an EPS surprise of +0.90%, with the consensus EPS estimate being $4.45.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...