AutoNation (AN) came out with quarterly earnings of $5.08 per share, beating the Zacks Consensus Estimate of $4.91 per share. This compares to earnings of $4.97 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.42%. A quarter ago, it was expected that this auto retailer would post earnings of $4.85 per share when it actually produced earnings of $5.01, delivering a surprise of +3.3%.Over the last four quarters, the company ha ...

Fourth Quarter 2025 Earnings Release February 6, 2026 1 Forward-Looking Statements This news release 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," ...

AutoNation reported lower fourth-quarter revenue, weighed down by fewer comparable sales of both new and used vehicles. ...

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 Fourth Quarter and Full Year Results FORT LAUDERDALE, Fla., (February 6, 2026) —AutoNation, Inc. (NYSE: AN) today reported fourth quarter 2025 revenue of $6.9 billion, a decrease of 4% compared to the same period a year ago. Fourth quarter 2025 EPS was $4.70, compared to $4.64 a year ago, and fourth quarter Adjusted EPS was $5.08, ...

Core Viewpoint - AutoNation, Inc. is a leading automotive retailer in the U.S. with a diverse range of products and services, operating through three segments: Domestic, Import, and Premium Luxury [1] Price Target Fluctuations - The consensus price target for AutoNation has fluctuated over the past year, starting at $245 a year ago, increasing to $250 last quarter, and then decreasing to $233.5 last month, indicating a more conservative short-term outlook [2][6] Earnings Expectations - AutoNation is anticipated to surpass earnings estimates in its upcoming report, supported by a strong track record of exceeding expectations, which could drive the stock price higher [3][6] Market Optimism and Performance - As inflation concerns ease, brokers are optimistic about AutoNation, with significant gains reported in new and used vehicle sales, finance, insurance, and parts/service sectors, contributing to improved profitability and cash flow [4] - Despite the optimism, risks such as margin pressures and rising auto loan delinquencies could impact AutoNation's performance [4][6] Investment Considerations - Investors should consider market conditions, company performance, and economic factors when evaluating AutoNation's stock, with upcoming earnings reports and company announcements expected to provide further insights [5]

Core Viewpoint - AutoNation, Inc. is expected to release its quarterly earnings on February 6, 2026, with Wall Street estimating an EPS of $4.91 and projected revenue of approximately $7.21 billion, despite anticipated year-over-year declines in earnings due to lower revenues for the quarter ending December 2025 [1][2] Financial Metrics - The company's price-to-earnings (P/E) ratio is approximately 12.20, indicating how the market values its earnings [3] - AutoNation's price-to-sales ratio is about 0.28, reflecting its market value relative to sales [3] - The enterprise value to sales ratio is approximately 0.62, while the enterprise value to operating cash flow ratio is notably high at around 156.70, indicating the company's valuation in relation to its cash flow from operations [4] - The earnings yield is approximately 8.20%, providing insight into the return on investment for shareholders [4] Leverage and Liquidity - AutoNation's debt-to-equity ratio is quite high at about 3.90, suggesting a heavy reliance on debt to finance operations [5] - The current ratio is approximately 0.79, indicating the company's ability to cover short-term liabilities with short-term assets [5]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] Zacks Style Scores - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - Stocks with a Value Score focus on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score emphasizes a company's future prospects by analyzing earnings, sales, and cash flow [4] - Momentum Score targets stocks with favorable price trends, utilizing metrics like one-week price change and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.83% since 1988, outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [10] Company Spotlight: AutoNation - AutoNation, Inc. is a leading automotive retailer in the U.S., providing vehicle sales, maintenance, parts, and financing services [11] - Currently rated 3 (Hold) by Zacks, AutoNation has a VGM Score of A and a Momentum Style Score of A, with a recent share price increase of 0.1% [12] - Analysts have recently revised AutoNation's earnings estimate upwards, with a Zacks Consensus Estimate of $20.06 per share and an average earnings surprise of +10.9%, making it a notable option for investors [12]

Core Viewpoint - AutoNation Inc. is highlighted as a top investment opportunity in the used-car sector, with a recent upgrade from JPMorgan indicating strong confidence in its earnings potential and strategic growth initiatives [1][3]. Group 1: Analyst Upgrades and Market Position - JPMorgan upgraded AutoNation from Neutral to Overweight, setting a price target of $235, reflecting confidence in the company's earnings trajectory compared to peers in the auto retail sector [1][3]. - The investment bank emphasized AutoNation's consistent share buybacks and strong balance sheet, which enhance shareholder value [3]. Group 2: Strategic Growth Initiatives - AutoNation is expanding its market presence through the acquisition of Jerry's Toyota for $123 million, which is projected to generate approximately $123 million in annual revenue from 2,600 vehicle sales [4]. - The company operates over 300 locations across the U.S., providing a wide range of services including financing, insurance, maintenance, and vehicle reconditioning [5]. Group 3: Competitive Advantages - AutoNation's brand mix and focus on the U.S. market are expected to yield organic performance that is in line or slightly better than its competitors [3].

Core Viewpoint - The Zacks Auto Retail and Wholesale industry is experiencing a mixed operating environment, with challenges such as slowing vehicle sales, high borrowing costs, and affordability constraints, while some companies are positioned to outperform through strategic acquisitions and digital initiatives [1] Industry Overview - The auto retail and wholesale industry is crucial for delivering vehicles and parts to consumers, operating through dealership networks and retail chains [2] - The industry's performance is closely tied to economic conditions, with consumer spending on vehicles typically increasing during economic growth and declining during downturns [2] - The COVID-19 pandemic has accelerated the shift towards online tools and e-commerce, a trend expected to continue [2] Factors Shaping Industry Dynamics - U.S. vehicle sales are projected to decline, with total new vehicle sales expected to be around 15.8 million units in 2026, a 2.4% year-over-year decrease, and new retail sales likely to fall 1.5% to 13.1 million units [3] - High interest rates, reduced manufacturer incentives, and tight household budgets are negatively impacting demand, while average new car prices are around $50,000 [3] - The EV market is facing uncertainty due to the loss of federal tax incentives, leading automakers to reduce EV investments and focus on gas and hybrid models [4] Strategic Buyouts - Auto retailers are actively pursuing acquisitions to expand their market reach and enhance competitive positioning, which helps diversify brand portfolios and improve operational efficiencies [5] Digitization - Dealers are investing in digital platforms to enhance customer experience, with tools like virtual showrooms and online pricing improving transparency and engagement [6] Capital Allocation - Many auto retailers are focusing on shareholder returns through share buybacks and dividend increases, supported by strong cash flow from disciplined acquisitions and cost-control initiatives [7] Industry Rank - The Zacks Auto Retail & Wholesale industry holds a Zacks Industry Rank of 89, placing it in the top 36% of nearly 245 Zacks industries, indicating strong near-term prospects [9][10] Stock Performance - The industry has underperformed compared to the S&P 500 and the Auto, Tires, and Truck sector over the past year, declining more than 1% while the S&P 500 and sector grew by 18% and 12%, respectively [12] Valuation - The industry is currently trading at an EV/EBITDA ratio of 8.36X, significantly lower than the S&P 500's 18.68X and the sector's 26.92X [15] Company Highlights - **AutoNation**: A leading automotive retailer expanding through acquisitions, with recent additions expected to generate significant annual revenues. The company is also enhancing its digital capabilities and prioritizing shareholder returns with a $1 billion share repurchase plan [19][20][21] - **Asbury Automotive Group**: A diversified auto retailer benefiting from multiple income streams and strategic acquisitions, with a focus on digitization through its Clicklane platform. The company is also expanding into higher-margin segments and reporting improved productivity from new technology [24][25][26]

Core Insights - The automotive retail industry is experiencing a digital transformation, with major dealership groups investing in cloud-based platforms to enhance operational efficiency [2] Group 1: Company Performance - Asbury Automotive operates 175 new vehicle dealerships and 39 collision centers, generating $4.80 billion in revenue during Q3 2025 [3] - AutoNation, the largest automotive retailer in the U.S., reported $27.92 billion in trailing twelve-month revenue [4] - Lithia Motors, the second-largest retailer, achieved $37.61 billion in revenue [5] Group 2: Digital Initiatives - Asbury is implementing Tekion's cloud-based dealership management system across its network, with a focus on improving operational efficiency [3][7] - AutoNation has invested in digital retail innovations, allowing customers to complete approximately 80% of the car-buying process online [4] - Lithia Motors has developed its Driveway digital platform, averaging 1.3 million unique visitors per month in Q2 2025 [5] Group 3: Financial Metrics - Asbury posted a 13% revenue growth year-over-year in Q3, outperforming AutoNation's 6.9% and Lithia's 4.9% [6][8] - Asbury's profit margin stands at 3.15%, exceeding AutoNation's 2.38% despite AutoNation's larger scale [6] - Asbury trades at an 8x P/E ratio, compared to AutoNation's 12x and Lithia's 10x, reflecting its faster growth [8]