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 Inc. (AN - Free Report) is the largest automotive retailer in the U.S. and is about twice the size of its nearest competitor. The company is positioned to benefit from recovery in the auto market, backed by its optimal brand and market mix as well as a disciplined cost structure. Rising average age of cars and trucks in the U.S., a robust consumer credit environment and an increase in new product offerings from automotive manufacturers is leading to a strong selling environment.
However, AutoNation operates in a highly competitive industry. In addition, the company is dependent on automakers for new vehicle inventory. Thus, any fluctuation in supply can adversely affect the results of the company.
Estimate Trend & Surprise History
Investors should note that the third-quarter earnings estimates for AutoNation have been stable over the past month.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed in one quarter. As a result, it has an average negative surprise of around 0.62% for the last four quarter. Thus, investors are eagerly awaiting AutoNation’s latest earnings report to see how it performs this time.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings Miss Estimates
AutoNation delivered adjusted earnings of $1.11 per share in the third quarter of 2016, which increased from $1.05 recorded in the third quarter of 2015. However, adjusted earnings missed the Zacks Consensus Estimate of $1.14. Adjusted earnings exclude a 6 cents per share negative impact related to the Takata airbag recall.
Revenues Miss Estimates
AutoNation reported revenues of $5.57 billion, up 4% year over year. However, revenues missed the Zacks Consensus Estimate of $5.62 billion.
Key Stats/Developments to Note
AutoNation announced the acquisition of three Premium Luxury franchises and one collision center as well as the award of three Premium Luxury franchise add-points. The incremental annual revenue from these is expected to be around $430 million, once the add-points are fully operational.
AutoNation announced the next phase of its comprehensive brand extension rollout. This phase includes AutoNation USA stand-alone pre-owned vehicle sales and service centers, AutoNation branded parts and accessories, the expansion of AutoNation branded collision centers, and the expansion of AutoNation Auto Auctions.
AutoNation’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on AutoNation’s earnings report!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AutoNation (AN) Q3 Earnings Miss, Brand Strategy Extended
AutoNation Inc. (AN - Free Report) is the largest automotive retailer in the U.S. and is about twice the size of its nearest competitor. The company is positioned to benefit from recovery in the auto market, backed by its optimal brand and market mix as well as a disciplined cost structure. Rising average age of cars and trucks in the U.S., a robust consumer credit environment and an increase in new product offerings from automotive manufacturers is leading to a strong selling environment.
However, AutoNation operates in a highly competitive industry. In addition, the company is dependent on automakers for new vehicle inventory. Thus, any fluctuation in supply can adversely affect the results of the company.
Estimate Trend & Surprise History
Investors should note that the third-quarter earnings estimates for AutoNation have been stable over the past month.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed in one quarter. As a result, it has an average negative surprise of around 0.62% for the last four quarter. Thus, investors are eagerly awaiting AutoNation’s latest earnings report to see how it performs this time.
AUTONATION INC Price and EPS Surprise
AUTONATION INC Price and EPS Surprise | AUTONATION INC Quote
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings Miss Estimates
AutoNation delivered adjusted earnings of $1.11 per share in the third quarter of 2016, which increased from $1.05 recorded in the third quarter of 2015. However, adjusted earnings missed the Zacks Consensus Estimate of $1.14. Adjusted earnings exclude a 6 cents per share negative impact related to the Takata airbag recall.
Revenues Miss Estimates
AutoNation reported revenues of $5.57 billion, up 4% year over year. However, revenues missed the Zacks Consensus Estimate of $5.62 billion.
Key Stats/Developments to Note
AutoNation announced the acquisition of three Premium Luxury franchises and one collision center as well as the award of three Premium Luxury franchise add-points. The incremental annual revenue from these is expected to be around $430 million, once the add-points are fully operational.
AutoNation announced the next phase of its comprehensive brand extension rollout. This phase includes AutoNation USA stand-alone pre-owned vehicle sales and service centers, AutoNation branded parts and accessories, the expansion of AutoNation branded collision centers, and the expansion of AutoNation Auto Auctions.
Zacks Rank
Currently, AutoNation has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Market Reaction
AutoNation’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on AutoNation’s earnings report!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>