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 ...

AutoNation (AN) came out with quarterly earnings of $4.02 per share, missing the Zacks Consensus Estimate of $4.48 per share. This compares to earnings of $5.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10.27%. A quarter ago, it was expected that this auto retailer would post earnings of $4.31 per share when it actually produced earnings of $3.99, delivering a surprise of -7.42%.Over the last four quarters, the company ...