Core Viewpoint - The Zacks Auto Retail and Wholesale industry shows robust prospects despite a challenging tariff environment, driven by a diversified product mix and multiple income streams [1] Industry Overview - The automotive sector's performance is heavily reliant on retail and wholesale networks, involving operations through dealerships and retail chains, including the sale of new and used vehicles, light trucks, auto parts, and providing repair and maintenance services [2] - The industry's success is closely tied to economic conditions, with higher disposable income leading to increased investment in big-ticket items, while tighter budgets result in reduced discretionary spending [2] - The COVID-19 pandemic has significantly reshaped the industry, increasing the focus on e-commerce [2] Factors Influencing Industry Prospects - Auto retailers benefit from a diversified product mix and multiple income streams, which reduce risk and position them for long-term growth, generating income from new and used vehicle retail, finance, insurance, and automotive repair [3] - Strategic acquisitions are being utilized by auto dealers to expand into new markets, thereby increasing market share and enhancing offerings [4] - Investment in digital platforms aligns with consumer preferences for online transactions, enabling dealers to reach a broader audience and drive higher profitability [4] Tariff Impact - A 25% tariff on imported vehicles and auto parts, imposed by the U.S. government, is expected to increase manufacturing costs and disrupt supply chains, potentially raising car prices by $5,000 to $15,000 [5] - Rising vehicle prices may lead consumers to consider used vehicles, increasing demand and prices for used cars, which could negatively impact new and used vehicle retailers' top-line growth [5] Industry Ranking and Performance - The Zacks Auto Retail & Wholesale industry ranks 46, placing it in the top 19% of around 250 Zacks industries, indicating bright near-term prospects [6][7] - The industry has outperformed the S&P 500 and the Auto, Tires, and Truck sector over the past year, returning 8.8% compared to the S&P 500's growth of 5.2% and the sector's decline of 9.8% [10] Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 8.18X, significantly lower than the S&P 500's 15.58X and the sector's 14.97X [13] - Over the past five years, the industry has traded between 4.78X and 10.79X, with a median of 7.13X [14] Company Highlights - **Lithia Motors, Inc. (LAD)**: A leading automotive retailer with strategic acquisitions increasing market share and enhancing its portfolio. The company achieved a cost-saving plan of $200 million and expects an additional $50-$70 million in interest cost savings in 2025 [19][20] - **AutoNation, Inc. (AN)**: One of the largest automotive retailers, improving its finance division and after-sales gross profit margin by nearly 250 basis points since 2019. The company anticipates mid-single-digit growth in its after-sales business [23][24][25] - **Group 1 Automotive, Inc. (GPI)**: A leading automotive retailer focusing on acquisitions and restructuring to improve operational efficiency. The company expects year-over-year growth of 9.91% in sales and 4.51% in EPS for 2025 [29][30]

Core Viewpoint - AutoNation (AN) is expected to report quarterly earnings of $4.25 per share, reflecting a decline of 5.4% year-over-year, while revenues are forecasted to increase by 0.6% to $6.52 billion [1] Earnings Estimates - The consensus EPS estimate has been adjusted upward by 1% over the past 30 days, indicating a reassessment by analysts [1][2] Revenue Projections - Analysts estimate 'Revenue- Parts and service' at $1.24 billion, showing a year-over-year increase of 5.4% [3] - 'Revenue- Finance and insurance net' is projected to reach $334.26 million, a slight decrease of 0.1% from the previous year [4] - 'Revenue- Used Vehicle' is expected to be $1.92 billion, indicating a decline of 3.9% year-over-year [4] - 'Revenue- New Vehicle' is forecasted at $2.97 billion, reflecting a decrease of 0.4% compared to the prior year [4] Vehicle Sales Estimates - 'Retail vehicle unit sales - New' are expected to reach 60,200, up from 58,863 year-over-year [5] - 'Retail vehicle unit sales - Used' are projected at 69,064, slightly down from 69,121 in the previous year [6] - Total 'Retail vehicle unit sales' are estimated at 129,263, compared to 127,984 reported last year [7] Profitability Metrics - 'Revenue per vehicle retailed - New' is expected to be $48,553.82, down from $50,614 year-over-year [5] - 'Gross profit per vehicle retailed - Finance and insurance' is projected at $2,596.50, compared to $2,615 in the same quarter last year [6] - 'Gross profit per vehicle retailed - Used' is estimated at $1,415.61, down from $1,473 year-over-year [7] - 'Gross profit per vehicle retailed - New' is expected to be $2,342.75, significantly lower than $3,328 reported last year [8] Stock Performance - AutoNation shares have decreased by 6.7% over the past month, while the Zacks S&P 500 composite has declined by 8.9% [9]

FORT LAUDERDALE, Fla., April 21, 2025 /PRNewswire/ -- AutoNation (NYSE: AN) today announced the appointment of Jeremy Tucker as Chief Marketing Officer, effective Monday, April 21, 2025. Tucker will join AutoNation's Senior Leadership Team and report directly to the company's Chief Executive Officer Mike Manley. Jeremy Tucker has been appointed Chief Marketing Officer for AutoNation. Jeremy Tucker has been appointed Chief Marketing Officer for AutoNation. "Jeremy's exceptional experience fostering brand loy ...

Core Viewpoint - AutoNation (AN) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended March 2025, with the consensus outlook indicating a potential impact on its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for release on April 25, 2025, and could lead to a stock price increase if results exceed expectations, while missing estimates may result in a decline [2]. - The Zacks Consensus Estimate predicts quarterly earnings of $4.22 per share, reflecting a year-over-year decrease of 6%, with revenues expected at $6.44 billion, down 0.7% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.69% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for AutoNation is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +3.32%, suggesting a bullish outlook on earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - AutoNation's recent surprise history shows it beat consensus EPS estimates two out of the last four quarters, with a notable surprise of +16.67% in the last reported quarter [12][13]. Industry Comparison - Sonic Automotive (SAH), another player in the automotive retail industry, is expected to post earnings of $1.38 per share for the same quarter, indicating a year-over-year increase of 1.5%, with revenues projected at $3.47 billion, up 2.6% [17]. - Sonic Automotive's consensus EPS estimate has remained unchanged, but a lower Most Accurate Estimate results in a negative Earnings ESP of -1.82%, making it challenging to predict an earnings beat [18].

Core Insights - AutoNation, Inc. will release its financial results for Q1 2025 on April 25, 2025, 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][2] Company Overview - AutoNation is one of the largest automotive retailers in the United States, providing a wide range of new and used vehicles, customer financing, parts, and maintenance services [3] - The company has raised over $40 million for cancer-related causes through its initiative DRV PNK, showcasing its commitment to community support [3]

Core Insights - Pinnacle Mergers & Acquisitions successfully facilitated the sale of Groove Ford and Groove Mazda to AutoNation, enhancing AutoNation's presence in the Colorado automotive market [1][2] - This transaction is part of a broader trend of consolidation in the U.S. auto retail sector, as large dealer groups expand into key regional markets [4] Company Highlights - Pinnacle has a strong track record in Colorado, having completed multiple high-profile dealership transactions, including previous deals with Lithia Motors and John Elway Dealership Group [3] - The firm has completed over 850 dealership transactions nationwide, totaling $40 billion, showcasing its expertise and market presence [5] Industry Trends - The Denver metro area is identified as one of the most active regions for automotive M&A activity, driven by strong dealership valuations and high buyer interest [4]

Core Insights - Pinnacle Mergers & Acquisitions successfully facilitated the sale of Groove Ford and Groove Mazda to AutoNation, enhancing AutoNation's presence in the Colorado automotive market [1][3] - The transaction highlights Pinnacle's expertise and strong track record in the Colorado dealership M&A sector, having completed multiple high-profile transactions [3][4] Company Summary - Pinnacle Mergers & Acquisitions has completed over 850 dealership transactions nationwide, totaling $40 billion in completed transactions [5] - The firm has a combined experience of 85 years, providing expert guidance and customized strategies to drive value in transactions [5] Industry Summary - The transaction reflects ongoing consolidation in the U.S. auto retail space, with large dealer groups expanding into key regional markets to adapt to changing consumer demand [4] - The Denver metro area is identified as one of the most active regions for automotive M&A activity, with strong dealership valuations and high buyer interest [4]

Group 1: Acquisition Details - AutoNation, Inc. completed the acquisition of Groove Ford and Groove Mazda dealerships, effective March 31, 2025, rebranding them as AutoNation Ford Arapahoe and AutoNation Mazda Arapahoe, with nearly 5,000 vehicles sold in 2024 generating approximately $219 million in annual revenues [1][2] - The acquisition expands AutoNation's presence in Colorado to a total of 13 Domestic, six Import, and three AutoNation USA dealerships, primarily in the greater Denver area [2] Group 2: Strategic Alignment - The acquisitions align with AutoNation's strategy of strengthening its footprint in existing markets, allowing the company to leverage operational efficiencies and enhance performance [3] - Strategic acquisitions, including those of Priority 1 Automotive and Peacock Automotive's 11 dealerships, have boosted AutoNation's annualized revenues [4] Group 3: Financial Performance - The acquisition of four dealerships from Moreland Auto Group and RepairSmith has fueled AutoNation's annual revenues, with reported revenues of $7.21 billion in Q4 2024, up from $6.77 billion in Q4 2023 [5]

Please visit www.autonation.com, investors.autonation.com, and www.x.com/autonation, where AutoNation discloses additional information about the Company, its business, and its results of operations. 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, fo ...

Core Points - AutoNation has opened two new AutoNation USA stores in Denton and Houston, marking the seventh and eighth pre-owned vehicle retail locations in Texas, contributing to a total of 26 nationwide [1][2] - The new stores aim to enhance customer experience and solidify AutoNation's position as a leading automotive retailer, recognized as the highest-ranked automotive dealer on the Fortune 2025 World's Most Admired Companies list [3] - The Denton store spans 18,306 square feet and creates 35 new jobs, while the Gulf Freeway store in Houston covers 18,426 square feet and adds 36 jobs to the local economy [3][4] - AutoNation USA offers a wide selection of high-quality used vehicles and competitive pricing through its 1Price Pre-Owned experience and the We'll Buy Your Car program, which provides same-day cash offers [5] - The company has a philanthropic focus, recently honoring the Texas chapter of the American Cancer Society as part of its DRV PNK initiative, which has raised over $40 million for cancer-related causes [6][9]