We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AutoNation Stock Falls 3.7% Since Q3 Earnings Miss Estimates
Read MoreHide Full Article
Shares of AutoNation, Inc. (AN - Free Report) 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.
AutoNation, Inc. Price, Consensus and EPS Surprise
In the reported quarter, new vehicle revenues were down 1% year over year to $3.2 billion but topped our estimate of $3.08 billion due to higher-than-expected sales volume and average selling price (ASP). New vehicle retail units sold totaled 62,890 units (up 2% year over year), beating our projection of 61,831 units. The ASP per new vehicle unit retailed was $50,207 (down 1.9% year over year), beating our estimate of $49,781. Gross profit from the segment came in at $176.7 million, declining 29.1% year over year but topping our estimate of $165 million.
Retail used-vehicle revenues contracted 15.1% from the year-ago quarter’s figure to $1.7 billion and missed our projection of $1.87 billion due to lower-than-expected sales volume and ASP. Used vehicle retail units sold totaled 64,071 units (down 9.8% year over year), missing our projection of 67,417 units. ASP per used vehicle unit retailed came in at $26,369 (down 5.9% year over year) and lagged our projection of $27,677. Gross profit from the segment came in at $103.8 million, which fell 16.8% but beat our projection of $103 million.
Revenues from wholesale used vehicles were up 7.4% to $151.9 million and surpassed our estimate of $146 million. Gross profit rose from $1.4 million to $6.4 million and topped our estimate of $1.7 million.
Net revenues in the finance and insurance business amounted to $328.7 million, which decreased 9.9% from the year-ago quarter and missed our projection of $406.3 million. Gross profit was $328.7 million, which decreased 9.9% and missed our estimate of $406.3 million.
Revenues from the parts and service business rose 2.6% to $1.15 billion but missed our estimate of $1.28 billion. Gross profit from this segment came in at $550.6 million, which rose 3.3% year over year but missed our estimate of $600.7 million.
Segmental Details
Revenues from the Domestic segment declined 10.9% year over year to $1.77 billion and missed our projection of $1.82 billion. The segment’s income plunged 41.8% to $62.4 million, missing our estimate of $74.4 million.
Revenues from the Import segment fell 1.5% from the prior-year quarter to $2.04 billion and missed our forecast of $2.07 billion. The segment’s income contracted 27.6% to $119.2 million and missed our model estimate of $132.9 million.
The Premium Luxury segment sales fell 3.6% to $2.43 billion, missing our projection of $2.56 billion. The segmental income declined 19.8% year over year to $154.7 million in the reported quarter and missed our estimate of $174.1 million.
Financial Tidbits
AutoNation’s cash and cash equivalents were $60.2 million as of Sept. 30, 2024. The company’s liquidity was $1.6 billion, including $60 million in cash and nearly $1.5 billion available under its revolving credit facility.
The firm’s inventory was valued at $3.53 billion. At the end of the third quarter, non-vehicle debt was $3.93 billion. Capital expenditure in the quarter was $81 million.
During the third quarter of 2023, AutoNation repurchased 36,000 shares of common stock for an aggregate purchase price of $6 million. Since the beginning of the year through Oct. 23, the company had bought back 2.2 million shares for $356 million. As of Oct. 23, it had $965 million remaining under its share repurchase program.
The Zacks Consensus Estimate for REE’s 2024 earnings suggests year-over-year growth of 64.37%. Earnings per share (EPS) estimates for 2024 and 2025 have improved $2.98 and $2.75, respectively, in the past 60 days.
The Zacks Consensus Estimate for CYD’s 2024 sales and earnings suggests year-over-year growth of 19.37% and 43.43%, respectively. EPS estimates for 2024 have improved by 35 cents in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.88% and 19.52%, respectively. EPS estimates for 2024 and 2025 have improved by 7 cents and 13 cents, respectively, in the past 30 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AutoNation Stock Falls 3.7% Since Q3 Earnings Miss Estimates
Shares of AutoNation, Inc. (AN - Free Report) 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.
AutoNation, Inc. Price, Consensus and EPS Surprise
AutoNation, Inc. price-consensus-eps-surprise-chart | AutoNation, Inc. Quote
Key Takeaways
In the reported quarter, new vehicle revenues were down 1% year over year to $3.2 billion but topped our estimate of $3.08 billion due to higher-than-expected sales volume and average selling price (ASP). New vehicle retail units sold totaled 62,890 units (up 2% year over year), beating our projection of 61,831 units. The ASP per new vehicle unit retailed was $50,207 (down 1.9% year over year), beating our estimate of $49,781. Gross profit from the segment came in at $176.7 million, declining 29.1% year over year but topping our estimate of $165 million.
Retail used-vehicle revenues contracted 15.1% from the year-ago quarter’s figure to $1.7 billion and missed our projection of $1.87 billion due to lower-than-expected sales volume and ASP. Used vehicle retail units sold totaled 64,071 units (down 9.8% year over year), missing our projection of 67,417 units. ASP per used vehicle unit retailed came in at $26,369 (down 5.9% year over year) and lagged our projection of $27,677. Gross profit from the segment came in at $103.8 million, which fell 16.8% but beat our projection of $103 million.
Revenues from wholesale used vehicles were up 7.4% to $151.9 million and surpassed our estimate of $146 million. Gross profit rose from $1.4 million to $6.4 million and topped our estimate of $1.7 million.
Net revenues in the finance and insurance business amounted to $328.7 million, which decreased 9.9% from the year-ago quarter and missed our projection of $406.3 million. Gross profit was $328.7 million, which decreased 9.9% and missed our estimate of $406.3 million.
Revenues from the parts and service business rose 2.6% to $1.15 billion but missed our estimate of $1.28 billion. Gross profit from this segment came in at $550.6 million, which rose 3.3% year over year but missed our estimate of $600.7 million.
Segmental Details
Revenues from the Domestic segment declined 10.9% year over year to $1.77 billion and missed our projection of $1.82 billion. The segment’s income plunged 41.8% to $62.4 million, missing our estimate of $74.4 million.
Revenues from the Import segment fell 1.5% from the prior-year quarter to $2.04 billion and missed our forecast of $2.07 billion. The segment’s income contracted 27.6% to $119.2 million and missed our model estimate of $132.9 million.
The Premium Luxury segment sales fell 3.6% to $2.43 billion, missing our projection of $2.56 billion. The segmental income declined 19.8% year over year to $154.7 million in the reported quarter and missed our estimate of $174.1 million.
Financial Tidbits
AutoNation’s cash and cash equivalents were $60.2 million as of Sept. 30, 2024. The company’s liquidity was $1.6 billion, including $60 million in cash and nearly $1.5 billion available under its revolving credit facility.
The firm’s inventory was valued at $3.53 billion. At the end of the third quarter, non-vehicle debt was $3.93 billion. Capital expenditure in the quarter was $81 million.
During the third quarter of 2023, AutoNation repurchased 36,000 shares of common stock for an aggregate purchase price of $6 million. Since the beginning of the year through Oct. 23, the company had bought back 2.2 million shares for $356 million. As of Oct. 23, it had $965 million remaining under its share repurchase program.
Zacks Rank & Key Picks
AN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are REE Automotive Ltd. (REE - Free Report) , CytoDyn Inc. (CYDY - Free Report) , and BYD Company Limited (BYDDY - Free Report) . While REE and CYDY sport a Zacks Rank #1 (Strong Buy) each, BYDDY carries Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for REE’s 2024 earnings suggests year-over-year growth of 64.37%. Earnings per share (EPS) estimates for 2024 and 2025 have improved $2.98 and $2.75, respectively, in the past 60 days.
The Zacks Consensus Estimate for CYD’s 2024 sales and earnings suggests year-over-year growth of 19.37% and 43.43%, respectively. EPS estimates for 2024 have improved by 35 cents in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.88% and 19.52%, respectively. EPS estimates for 2024 and 2025 have improved by 7 cents and 13 cents, respectively, in the past 30 days.