AutoNation(AN) ZACKS·2025-04-28 13:55Core Insights - AutoNation, Inc. reported first-quarter 2025 adjusted earnings of $4.68 per share, a 4% increase year over year, surpassing the Zacks Consensus Estimate of $4.35, driven by strong revenues and profits from retail new and used vehicles [1] - Total revenues for the quarter reached $6.69 billion, exceeding the Zacks Consensus Estimate of $6.57 billion and up from $6.48 billion in the first quarter of 2024 [1] Revenue Breakdown - New vehicle revenues increased by 9% year over year to $3.24 billion, exceeding the estimate of $2.83 billion, with retail units sold totaling 62,387, a 6% increase from the previous year [2] - Average selling price (ASP) for new vehicles rose by 2.9% year over year to $52,064, surpassing the estimate of $47,541 [2] - Gross profit from new vehicles was $175 million, a decline of 10.7% year over year, but above the estimate of $112.5 million [2] Used Vehicle Performance - Retail used-vehicle revenues decreased by 2.3% year over year to $1.79 billion, but exceeded the projection of $1.77 billion due to higher ASP [3] - Used vehicle retail units sold were 68,000, down 1.6% year over year, missing the projection of 69,429 units [3] - ASP for used vehicles was $26,354, down 0.7% year over year, but above the estimate of $25,562 [3] - Gross profit from used vehicles increased by 11% to $113 million, surpassing the estimate of $86.3 million [3] Wholesale and Other Segments - Revenues from wholesale used vehicles fell by 19.7% to $130.3 million, missing the estimate of $165.7 million, while gross profit rose to $11.5 million from $9.7 million, exceeding the estimate of $6.2 million [4] - Finance and insurance business net revenues were $352.5 million, a 5.3% increase year over year, beating the projection of $332.2 million [4] - Parts and service revenues contracted by 0.7% to $1.16 billion, missing the estimate of $1.3 billion, while gross profit rose by 2.1% to $567.7 million, below the estimate of $618 million [5] Segmental Performance - Domestic segment revenues declined by 2.2% year over year to $1.71 billion, exceeding the projection of $1.7 billion, with segment income down 8.2% to $69 million, but above the estimate of $60 million [5] - Import segment revenues increased by 3.4% to $2 billion, surpassing the forecast of $1.95 billion, with income contracting by 2% to $126 million, exceeding the estimate of $113 million [6] - Premium Luxury segment sales rose by 6.7% to $2.57 billion, surpassing the projection of $2.44 billion, with segment income increasing by 4.1% to $178.7 million, exceeding the estimate of $160 million [6] Financial Position - As of March 31, 2025, the company's liquidity stood at $1.6 billion, including $71 million in cash and nearly $1 billion available under its revolving credit facility [7] - Inventory was valued at $3.23 billion, and non-vehicle debt was $3.96 billion [7] - Capital expenditure for the quarter was $75.2 million [7] Share Repurchase Activity - During the first quarter of 2025, AutoNation repurchased 1.4 million shares for $225 million, with a total of 1.5 million shares repurchased for $254 million since the beginning of the year [8] - The company currently has $607 million remaining under its share repurchase program [8]