AutoNation (AN) Reports Next Week: Wall Street Expects Earnings Growth

Core Viewpoint - Wall Street anticipates a year-over-year increase in AutoNation's earnings driven by higher revenues, with the actual results being crucial for near-term stock price movements [1][2]. Earnings Expectations - AutoNation is expected to report quarterly earnings of $4.67 per share, reflecting a +17% year-over-year change, and revenues are projected to be $6.79 billion, up 4.8% from the previous year [3]. - The earnings report is scheduled for July 25, and better-than-expected results could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised 1.3% higher in the last 30 days, indicating a reassessment by analysts [4]. - However, the Most Accurate Estimate for AutoNation is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.21%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but its predictive power is significant mainly for positive readings [9][10]. - AutoNation's current Zacks Rank is 3, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, AutoNation exceeded expectations with earnings of $4.68 per share against an expected $4.35, resulting in a surprise of +7.59% [13]. - Over the past four quarters, AutoNation has beaten consensus EPS estimates two times [14]. Industry Comparison - Sonic Automotive, another player in the automotive retail industry, is expected to post earnings of $1.61 per share, indicating a +9.5% year-over-year change, with revenues projected at $3.65 billion, up 5.7% [18]. - Sonic Automotive's consensus EPS estimate has been revised 0.3% higher, but it also has a negative Earnings ESP of -0.16%, making predictions of an earnings beat challenging [19][20].