Automotive retailer AutoNation beats Q3 profit estimates as margins improve

AutoNation

23/10/2025 12:17

Overview

AutoNation Q3 revenue up 7% to $7 bln, beating analyst expectations

Adjusted EPS for Q3 rises 25% to $5.01, surpassing analyst estimates

Company reports record profits in After-Sales and Customer Financial Services

Outlook

AutoNation highlights strong cash flow and strategic capital deployments for shareholder returns

Company emphasizes multiple revenue streams and flexible cost structure for future strength

Result Drivers

RECORD AFTER-SALES PROFITS - Co reports record After-Sales gross profit of $597 mln, up 7% with a gross margin increase of 100bps

CFS GROWTH - Record Customer Financial Services gross profit of $375 mln, up 12%

FINANCE SCALING - AutoNation Finance scaled its portfolio to over $2 bln, improving profitability

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$7.03 bln
$6.85 bln (9 Analysts)
Q3 Adjusted EPS
Beat
$5.01
$4.82 (10 Analysts)
Q3 EPS
$5.65


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

Wall Street's median 12-month price target for AutoNation Inc is $220.00, about 0.6% above its October 21 closing price of $218.70

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn8ZdmGqa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)