We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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) reported first-quarter 2025 adjusted earnings of $4.68 per share, which increased 4% year over year and beat the Zacks Consensus Estimate of $4.35, primarily on the back of better-than-expected revenues and profits from retail new and used vehicles. In the quarter under review, revenues amounted to $6.69 billion, which surpassed the Zacks Consensus Estimate of $6.57 billion and rose from $6.48 billion reported in the first quarter of 2024.
AutoNation, Inc. Price, Consensus and EPS Surprise
In the reported quarter, new vehicle revenues were up 9% year over year to $3.24 billion and topped our estimate of $2.83 billion due to higher-than-expected sales volume and average selling price (ASP). New vehicle retail units sold totaled 62,387 units (up 6% year over year), beating our projection of 59,614 units. The ASP per new vehicle unit retailed was $52,064 (up 2.9% year over year), beating our estimate of $47,541. Gross profit from the segment came in at $175 million, which declined 10.7% year over year but beat our estimate of $112.5 million.
Retail used-vehicle revenues contracted 2.3% from the year-ago quarter’s figure to $1.79 billion but surpassed our projection of $1.77 billion due to higher-than-expected ASP. Used vehicle retail units sold totaled 68,000 units (down 1.6% year over year), missing our projection of 69,429 units. ASP per used vehicle unit retailed came in at $26,354 (down 0.7% year over year) and topped our projection of $25,562. Gross profit from the segment came in at $113 million, which rose 11% and beat our projection of $86.3 million.
Revenues from wholesale used vehicles were down 19.7% to $130.3 million and missed our estimate of $165.7 million. Gross profit rose to $11.5 million from $9.7 million and topped our estimate of $6.2 million.
Net revenues in the finance and insurance business amounted to $352.5 million, which increased 5.3% from the year-ago quarter and beat our projection of $332.2 million. Gross profit was $352.5 million, which increased 5.3% and beat our estimate of $332.5 million.
Revenues from the parts and service business contracted 0.7% to $1.16 billion and missed our estimate of $1.3 billion. Gross profit from this segment came in at $567.7 million, which rose 2.1% year over year but missed our estimate of $618 million.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Segmental Details
Revenues from the Domestic segment declined 2.2% year over year to $1.71 billion but topped our projection of $1.7 billion. The segment’s income plunged 8.2% to $69 million but topped our estimate of $60 million.
Revenues from the Import segment increased 3.4% from the prior-year quarter to $2 billion and topped our forecast of $1.95 billion. The segment’s income contracted 2% to $126 million but surpassed our model estimate of $113 million.
Premium Luxury segment sales rose 6.7% to $2.57 billion, surpassing our projection of $2.44 billion. The segmental income rose 4.1% year over year to $178.7 million in the reported quarter and topped our estimate of $160 million.
Financial Tidbits
As of March 31, 2025, the company’s liquidity was $1.6 billion, including $71 million in cash and nearly $1. billion available under its revolving credit facility. The firm’s inventory was valued at $3.23 billion. At the end of the first quarter, non-vehicle debt was $3.96 billion. Capital expenditure in the quarter was $75.2 million.
During the first quarter of 2025, AutoNation repurchased 1.4 million shares for $225 million. Since the beginning of the year through April 23, 2025, the company bought back 1.5 million shares for $254 million. Currently, AN has $607 million remaining under its share repurchase program.
Lithia Motors (LAD - Free Report) reported first-quarter 2025 adjusted earnings per share of $7.66, which improved from the prior-year quarter’s $6.11 but missed the Zacks Consensus Estimate of $7.77. Lithia Motors clocked revenues of $9.18 billion, which increased 7.3% year over year but lagged the Zacks Consensus Estimate of $9.33 billion. Lithia Motors had cash/cash equivalents/restricted cash of $430.3 million as of March 31, 2025, up from $402.2 million as of Dec. 31, 2024. Long-term debt was $5.9 billion as of March 31, 2025, down from $6.1 billion as of Dec. 31, 2024.
Sonic Automotive (SAH - Free Report) posted first-quarter 2025 adjusted earnings per share of $1.48, which topped the Zacks Consensus Estimate of $1.46 and improved 8.82% from the year-ago quarter. Sonic Automotive reported revenues of $3.65 billion, which surpassed the Zacks Consensus Estimate of $3.54 billion and rose from the year-ago quarter’s $3.38 billion. Sonic Automotive had cash & cash equivalents of $64.6 million as of March 31, 2025, up from $44 million as of Dec. 31, 2024. Long-term debt was $1.49 billion as of March 31, 2025, down from $1.51 billion as of Dec. 31, 2024.
O’Reilly Automotive (ORLY - Free Report) reported first-quarter 2025 adjusted earnings per share (EPS) of $9.35, which lagged the Zacks Consensus Estimate of $9.83. The bottom line, however, increased from $9.20 reported in the prior-year quarter. O’Reilly Automotive registered quarterly revenues of $4.14 billion, missing the Zacks Consensus Estimate of $4.17 billion. The top line, however, increased 4% year over year. As of March 31, 2025, O’Reilly Automotive had cash and cash equivalents of $191.2 million, an increase from $89.3 million recorded as of March 31, 2024. Its long-term debt was $5.65 billion, up from $5.29 billion as of March 31, 2024.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AutoNation Q1 Earnings & Revenues Beat Estimates, Increase Y/Y
AutoNation, Inc. (AN - Free Report) reported first-quarter 2025 adjusted earnings of $4.68 per share, which increased 4% year over year and beat the Zacks Consensus Estimate of $4.35, primarily on the back of better-than-expected revenues and profits from retail new and used vehicles. In the quarter under review, revenues amounted to $6.69 billion, which surpassed the Zacks Consensus Estimate of $6.57 billion and rose from $6.48 billion reported in the first quarter of 2024.
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 up 9% year over year to $3.24 billion and topped our estimate of $2.83 billion due to higher-than-expected sales volume and average selling price (ASP). New vehicle retail units sold totaled 62,387 units (up 6% year over year), beating our projection of 59,614 units. The ASP per new vehicle unit retailed was $52,064 (up 2.9% year over year), beating our estimate of $47,541. Gross profit from the segment came in at $175 million, which declined 10.7% year over year but beat our estimate of $112.5 million.
Retail used-vehicle revenues contracted 2.3% from the year-ago quarter’s figure to $1.79 billion but surpassed our projection of $1.77 billion due to higher-than-expected ASP. Used vehicle retail units sold totaled 68,000 units (down 1.6% year over year), missing our projection of 69,429 units. ASP per used vehicle unit retailed came in at $26,354 (down 0.7% year over year) and topped our projection of $25,562. Gross profit from the segment came in at $113 million, which rose 11% and beat our projection of $86.3 million.
Revenues from wholesale used vehicles were down 19.7% to $130.3 million and missed our estimate of $165.7 million. Gross profit rose to $11.5 million from $9.7 million and topped our estimate of $6.2 million.
Net revenues in the finance and insurance business amounted to $352.5 million, which increased 5.3% from the year-ago quarter and beat our projection of $332.2 million. Gross profit was $352.5 million, which increased 5.3% and beat our estimate of $332.5 million.
Revenues from the parts and service business contracted 0.7% to $1.16 billion and missed our estimate of $1.3 billion. Gross profit from this segment came in at $567.7 million, which rose 2.1% year over year but missed our estimate of $618 million.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Segmental Details
Revenues from the Domestic segment declined 2.2% year over year to $1.71 billion but topped our projection of $1.7 billion. The segment’s income plunged 8.2% to $69 million but topped our estimate of $60 million.
Revenues from the Import segment increased 3.4% from the prior-year quarter to $2 billion and topped our forecast of $1.95 billion. The segment’s income contracted 2% to $126 million but surpassed our model estimate of $113 million.
Premium Luxury segment sales rose 6.7% to $2.57 billion, surpassing our projection of $2.44 billion. The segmental income rose 4.1% year over year to $178.7 million in the reported quarter and topped our estimate of $160 million.
Financial Tidbits
As of March 31, 2025, the company’s liquidity was $1.6 billion, including $71 million in cash and nearly $1. billion available under its revolving credit facility. The firm’s inventory was valued at $3.23 billion. At the end of the first quarter, non-vehicle debt was $3.96 billion. Capital expenditure in the quarter was $75.2 million.
During the first quarter of 2025, AutoNation repurchased 1.4 million shares for $225 million. Since the beginning of the year through April 23, 2025, the company bought back 1.5 million shares for $254 million. Currently, AN has $607 million remaining under its share repurchase program.
AN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Peer Releases
Lithia Motors (LAD - Free Report) reported first-quarter 2025 adjusted earnings per share of $7.66, which improved from the prior-year quarter’s $6.11 but missed the Zacks Consensus Estimate of $7.77. Lithia Motors clocked revenues of $9.18 billion, which increased 7.3% year over year but lagged the Zacks Consensus Estimate of $9.33 billion. Lithia Motors had cash/cash equivalents/restricted cash of $430.3 million as of March 31, 2025, up from $402.2 million as of Dec. 31, 2024. Long-term debt was $5.9 billion as of March 31, 2025, down from $6.1 billion as of Dec. 31, 2024.
Sonic Automotive (SAH - Free Report) posted first-quarter 2025 adjusted earnings per share of $1.48, which topped the Zacks Consensus Estimate of $1.46 and improved 8.82% from the year-ago quarter. Sonic Automotive reported revenues of $3.65 billion, which surpassed the Zacks Consensus Estimate of $3.54 billion and rose from the year-ago quarter’s $3.38 billion. Sonic Automotive had cash & cash equivalents of $64.6 million as of March 31, 2025, up from $44 million as of Dec. 31, 2024. Long-term debt was $1.49 billion as of March 31, 2025, down from $1.51 billion as of Dec. 31, 2024.
O’Reilly Automotive (ORLY - Free Report) reported first-quarter 2025 adjusted earnings per share (EPS) of $9.35, which lagged the Zacks Consensus Estimate of $9.83. The bottom line, however, increased from $9.20 reported in the prior-year quarter. O’Reilly Automotive registered quarterly revenues of $4.14 billion, missing the Zacks Consensus Estimate of $4.17 billion. The top line, however, increased 4% year over year. As of March 31, 2025, O’Reilly Automotive had cash and cash equivalents of $191.2 million, an increase from $89.3 million recorded as of March 31, 2024. Its long-term debt was $5.65 billion, up from $5.29 billion as of March 31, 2024.