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].

Shares of AutoNation Inc (NYSE: AN ) have delivered a total return of 27% since my initial Strong Buy recommendation, AutoNation: A Solid Value Stock Buy , was published on November 21, 2023. Comparably, the S&P 500 has deliveredAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for ...

AutoNation Mobile Services Comes to Your Doorstep, Making Pre-Travel Maintenance a BreezeFORT LAUDERDALE, Fla., Nov. 25, 2024 /PRNewswire/ -- This Thanksgiving is gearing up to be one of the busiest on record. With average gas prices near $3 a gallon in several metros across the country, close to 72 million* travelers are expected to hit the road to spend time with loved ones. AutoNation (NYSE: AN) brings peace of mind to you this holiday season, keeping the road ahead safe and smooth with the convenience o ...

FORT LAUDERDALE, Fla., Nov. 12, 2024 /PRNewswire/ -- For more than a decade, AutoNation (NYSE: AN) has donated and raised more than $40M to advance life-saving cancer research and treatment to help create the possibility of a cancer-free world. Through Drive Pink (DRV PNK), AutoNation's largest social impact program, throughout October, the company extended its year-round commitment to supporting cancer-fighting organizations through its 8th Annual DRV PNK Across America campaign. "Each day at AutoNation, ...

Shares of AutoNation, Inc. (AN) fell 3.7% since the company reported third-quarter 2024 results. It reported adjusted earnings of $4.02 per share, which decreased 27% year over year and missed the Zacks Consensus Estimate of $4.48. In the third quarter, revenues amounted to $6.59 billion, which missed the Zacks Consensus Estimate of $6.73 billion and declined from $6.89 billion reported in the third quarter of 2023.Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.Key TakeawaysIn the ...

FORT LAUDERDALE, Fla., Oct. 29, 2024 /PRNewswire/ -- In respect and recognition of their contributions to our nation, this Veteran's Day AutoNation (NYSE: AN) salutes the generations of patriots who selflessly defend our country's values and freedom with an exclusive 20% discount on all services in-store at AutoNationbranded locations* nationwide and conveniently at your preferred location via AutoNation Mobile Service** from November 11th - 16th, 2024. "We owe an incredible debt to the brave men and women ...

Financial Performance - Net income for the three months ended September 30, 2024, was $185.8 million, with diluted earnings per share of $4.61, compared to $243.7 million and $5.54 in the same period of 2023[128]. - Total revenue for the three months ended September 30, 2024, was $6,586.1 million, a decrease of 4.4% compared to $6,892.7 million in the same period of 2023[143]. - Total gross profit for the three months ended September 30, 2024, was $1,182.8 million, down 8.6% from $1,294.6 million in the same period of 2023[143]. - Operating income for the three months ended September 30, 2024, was $350.7 million, a decrease of 16.4% from $419.5 million in 2023[143]. - Total revenue for the first nine months of 2024 was $5,563.3 million, down 9.8% from $6,169.4 million in the same period of 2023[166]. Vehicle Sales and Inventory - For the nine months ended September 30, 2024, new vehicle sales accounted for 47% of total revenue and 16% of total gross profit[124]. - The company experienced a 2% decrease in U.S. industry retail new vehicle unit sales in Q3 2024 compared to Q3 2023[125]. - Retail vehicle unit sales for new vehicles increased by 2.0% to 62,890 units, while used vehicle sales decreased by 9.8% to 64,071 units[149]. - The new vehicle inventory at September 30, 2024, was 46,090 units, up from 27,544 units in 2023[131]. - Inventory days supply for new vehicles increased to 52 days in September 2024 from 31 days in September 2023[145]. Revenue Breakdown - New vehicle revenue decreased by $16.4 million (0.5%) to $3,171.2 million for the three months ended September 30, 2024, compared to $3,187.6 million in 2023[143]. - Retail used vehicle revenue decreased by $283.7 million (14.0%) to $1,741.4 million for the three months ended September 30, 2024, compared to $2,025.1 million in 2023[143]. - Parts and service operations contributed 47% of total gross profit despite comprising only 18% of total revenue[124]. - Parts and service revenue accounted for 17.8% of total revenue for the three months ended September 30, 2024, compared to 16.8% in 2023[146]. - The finance and insurance segment reported a net revenue of $328.7 million, down 9.9% from $364.8 million in the previous year[149]. Profit Margins - New vehicle gross profit margin decreased to 5.6% for the three months ended September 30, 2024, compared to 7.9% in 2023[146]. - Used vehicle gross profit margin for retail was 6.1% for the three months ended September 30, 2024, down from 6.3% in 2023[146]. - The gross profit margin for new vehicles decreased to 15.1% from 19.6% in the prior year, indicating a decline in profitability[151]. - Total variable operations gross profit per vehicle retailed decreased by 13.9% to $4,769 for the three months ended September 30, 2024, compared to $5,540 in 2023[143]. Expenses and Financial Position - SG&A expenses decreased to $811.3 million for the three months ended September 30, 2024, from $819.3 million in 2023, a 1.0% decrease[208]. - Floorplan interest expense increased to $60.5 million for the three months ended September 30, 2024, from $38.3 million in 2023, a rise of 57.9%[213]. - The effective income tax rate was 24.9% for the three months ended September 30, 2024, compared to 25.6% for the same period in 2023[218]. - The company reported a total of $3,603.3 million in long-term debt as of September 30, 2024, compared to $3,612 million at December 31, 2023[234]. - As of September 30, 2024, the company had cash and cash equivalents of $60.2 million, down from $60.8 million at December 31, 2023[225]. Strategic Initiatives and Market Conditions - The company is investing significantly in strategic initiatives, including the planned expansion of AutoNation USA stores and AutoNation Finance business[249]. - The automotive retail industry is sensitive to changing economic conditions, including unemployment levels and consumer confidence, which could impact vehicle sales levels[248]. - The CDK outage negatively impacted vehicle sales, inventory, and customer relationship management functions, affecting both domestic and import revenues[195]. - The CDK cyber incident negatively impacted earnings per share by approximately $0.21 for the quarter ended September 30, 2024[130]. - The company did not acquire any stores during the nine months ended September 30, 2024, but divested seven Domestic stores and one Import store during the same period[231].

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $6.6 billion, a decrease of 4% year-over-year, primarily due to a decline in Used Vehicle unit sales and moderated selling prices for both new and used vehicles [12] - Gross profit increased 2% sequentially to $1.2 billion but was down from the previous year, with a gross profit margin of 18% of revenue remaining unchanged from Q2 [12][13] - Adjusted net income was $162 million compared to $244 million a year ago, with adjusted EPS at $4.02 for the quarter, not accounting for the $0.21 EPS impact from the CDK outage [14][15] Business Line Data and Key Metrics Changes - New Vehicle sales saw a 2% increase in same-store units, with strong performance across all segments, including Premium Luxury, Import, and Domestic [6][16] - Used Vehicle sales decreased nearly 8% year-over-year but showed sequential growth, with strong demand for vehicles priced under $20,000 [7][17] - Customer Financial Services (CFS) experienced sequential improvement, with product attachment rates and CFS PVRs exceeding previous records, and AN Finance originated over $700 million in new loans year-to-date [8][19] Market Data and Key Metrics Changes - New Vehicle inventory levels were at 46,000 units at the end of September, reflecting a 52-day sales supply, which is consistent with prior periods after adjusting for the CDK impacts [16] - Used Vehicle PVR was down approximately 9% year-over-year but remained stable sequentially, with a notable shift towards lower-priced vehicles [18] - The After-Sales segment grew gross profit by more than 3% year-over-year, now representing nearly half of total gross profit [20] Company Strategy and Development Direction - The company is focusing on capital allocation opportunities, including share repurchases and potential acquisitions, while also optimizing its portfolio through divestitures [10][22] - There is an expectation of moderation in seller expectations for franchise store valuations, allowing for more capital deployment in acquisitions that yield higher returns [11][22] - The company aims to enhance its self-sourcing capabilities for Used Vehicles to maintain and improve margin performance [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving affordability due to interest rate reductions, which is expected to lift demand for both new and used vehicles [25] - The company is encouraged by the stabilization of new car margins and anticipates that the fourth quarter will benefit from seasonal strength in premium luxury brands [17][25] - Management acknowledged the challenges faced in Q3, including the CDK outage and weather-related store closures, but noted a strong recovery in performance [6][25] Other Important Information - The company divested eight franchise stores during the quarter, generating over $150 million in proceeds, which will be used for capital reallocation [10][14] - Adjusted free cash flow year-to-date through September was $467 million, down from $850 million a year ago, reflecting changes in earnings and the impact of the CDK outage [21] Q&A Session Summary Question: Impact of warranty work from stop-sales on parts and service growth - Management noted that there is potential for growth in customer pay due to increased warranty work from stop-sales, with a focus on improving penetration in various vehicle age segments [27][28] Question: Clarification on AutoNation Finance's ABS deal and funding costs - Management indicated that the first ABS deal is expected next year, which should lower funding costs compared to current warehouse lines, but specific numbers are not yet available [30][31] Question: Trends in used car business post-CDK outage - Management reported that used car performance improved throughout Q3, with a better inventory position entering Q4, leading to an optimistic outlook for used vehicle sales [39][40] Question: Effects of storms on sales and service - Management confirmed that while the sales side typically recovers quickly post-storm, the service side experiences lingering effects, with some downtime but overall manageable impacts [41][42] Question: After-Sales growth and its underlying strength - Management emphasized that After-Sales growth was strong despite challenges, with a focus on technician recruitment and retention to further enhance service capabilities [47][48]

AutoNation (AN) reported $6.59 billion in revenue for the quarter ended September 2024, representing a yearover-year decline of 4.5%. EPS of $4.02 for the same period compares to $5.54 a year ago. The reported revenue represents a surprise of -2.18% over the Zacks Consensus Estimate of $6.73 billion. With the consensus EPS estimate being $4.48, the EPS surprise was -10.27%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...