Core Viewpoint - Analysts project AutoNation (AN) will report quarterly earnings of $4.85 per share, a 20.7% increase year over year, with revenues expected to reach $6.86 billion, up 4.1% from the same quarter last year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 0.1%, indicating a collective reconsideration by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong relationship between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenue- Other' at $5.43 million, reflecting a decrease of 24.5% year over year [5]. - The consensus for 'Revenue- New Vehicle' is $3.33 billion, indicating a 5% increase from the previous year [5]. - 'Revenue- Used Vehicle' is expected to be $1.93 billion, showing a 1.7% increase from the year-ago quarter [5]. - 'Revenue- Parts and service' is projected to reach $1.24 billion, a 5.5% increase from the prior year [6]. Vehicle Sales and Metrics - Total retail vehicle unit sales are expected to be 133,511, up from 129,604 in the same quarter last year [6]. - 'Revenue per vehicle retailed - New' is forecasted at $50,923.59, compared to $50,217.00 from the previous year [6]. - 'Revenue per vehicle retailed - Used' is estimated at $26,737.32, up from $26,205.00 year over year [7]. - 'Gross profit per vehicle retailed - Finance and insurance' is expected to be $2,639.71, compared to $2,588.00 last year [7]. - 'Retail vehicle unit sales - Used' are projected at 68,140, compared to 66,454 in the same quarter last year [8]. - 'Retail vehicle unit sales - New' are estimated at 65,371, up from 63,150 year over year [8]. - 'Gross profit per vehicle retailed - Used' is forecasted at $1,513.42, down from $1,589.00 last year [8]. - 'Gross profit per vehicle retailed - New' is expected to be $2,499.23, compared to $2,804.00 from the previous year [9]. Stock Performance - AutoNation shares have returned -0.8% over the past month, while the Zacks S&P 500 composite has changed by +1.1% [10].

Core Insights - Lithia Motors (LAD) reported second-quarter 2025 adjusted earnings per share of $10.24, an increase from $7.87 in the prior-year quarter, exceeding the Zacks Consensus Estimate of $9.78 [1] - The company's revenues reached $9.58 billion, marking a 3.7% year-over-year increase and surpassing the Zacks Consensus Estimate of $9.53 billion [1] Segmental Performance - New vehicle retail revenues rose 2.2% year over year to $4.5 billion, although it fell short of the estimate of $4.75 billion; new vehicle units sold increased 1.8% to 94,144 units, missing the estimate of 100,205 units [2] - The average selling price (ASP) of new vehicles increased to $47,782 from $47,603 in the prior-year quarter, exceeding the estimate of $47,431; gross margin in this segment contracted by 60 basis points to 6.7% due to a 2.8% rise in cost of sales to $4.2 billion [2] - Used vehicle retail revenues grew 3.6% year over year to $3.1 billion, surpassing the estimate of $2.9 billion, driven by a higher-than-expected ASP; used vehicle units sold declined 0.2% to 109,053 units, missing the expectation of 111,328 units [3] - The ASP of used vehicles increased by 3.8% year over year to $28,379, exceeding the estimate of $26,135; gross margin in this segment increased by 20 basis points to 6.7% [3] - Revenues from used vehicle wholesale surged 32.3% to $383 million, outpacing the estimate of $340 million; finance and insurance revenues rose 3.6% to $373.8 million but fell short of the estimate of $398.9 million [4] - Aftersales revenues reached $1.02 billion, a 7.6% year-over-year increase, surpassing the estimate of $985 million; revenues from fleet and others contracted 13.1% year over year to $209.5 million, missing the expectation of $244 million [4] Financial Highlights - Cost of sales increased by 3.7% year over year in Q2 2025; SG&A expenses were reported at $1.01 billion, with adjusted SG&A as a percentage of gross profit decreasing to 67.7% from 67.9% in the prior-year quarter [6] - Both pretax and net profit margins improved compared to the previous year [6] Shareholder Actions - The company announced a dividend of 55 cents to be paid on August 22, 2025, to shareholders of record as of August 8, 2025; in Q2 2025, LAD repurchased nearly 387,000 shares at an average price of $306 [7] - Lithia has approximately $568.8 million shares remaining under its buyback authorization [7] Cash and Debt Position - As of June 30, 2025, Lithia had cash and cash equivalents of $404.4 million, up from $402.2 million as of December 31, 2024; long-term debt increased to $6.7 billion from $6.1 billion during the same period [8]

Core Insights - AutoNation (AN) is expected to report quarterly earnings of $4.70 per share, reflecting a year-over-year increase of 17.8% [1] - Revenues are anticipated to reach $6.8 billion, which is a 4.9% increase from the same quarter last year [1] - The consensus EPS estimate has been revised upward by 1.6% in the past 30 days, indicating analysts' reassessment of their initial estimates [1][2] Revenue Estimates - Analysts predict 'Revenue- Parts and service' will reach $1.19 billion, marking a 6.4% increase from the prior-year quarter [3] - The 'Revenue- Finance and insurance net' is estimated at $337.81 million, reflecting a 4.3% increase from the year-ago quarter [4] - 'Revenue- Used Vehicle' is expected to be $1.92 billion, indicating a 0.7% increase from the prior-year quarter [4] - 'Revenue- New Vehicle' is projected to reach $3.31 billion, which is a 5.9% increase from the year-ago quarter [4] Sales and Profit Metrics - Total 'Retail vehicle unit sales' are expected to be 130,325, compared to 126,772 in the previous year [5] - 'Revenue per vehicle retailed - New' is forecasted to be $51,872.62, up from $50,965.00 in the same quarter last year [5] - 'Revenue per vehicle retailed - Used' is estimated at $27,368.63, compared to $26,617.00 in the same quarter last year [6] - 'Gross profit per vehicle retailed - Finance and insurance' is expected to reach $2,598.93, up from $2,556.00 in the previous year [6] Used and New Vehicle Sales - 'Retail vehicle unit sales - Used' are projected at 66,701, compared to 65,504 in the same quarter last year [7] - 'Retail vehicle unit sales - New' is estimated at 63,624, up from 61,268 in the previous year [7] - 'Gross profit per vehicle retailed - Used' is expected to be $1,612.39, slightly down from $1,638.00 in the previous year [7] - 'Gross profit per vehicle retailed - New' is projected to be $2,892.10, down from $3,108.00 in the same quarter last year [8] Market Performance - AutoNation shares have changed by +0.3% in the past month, while the Zacks S&P 500 composite has moved +5.9% [8]