Overview
AutoNation Q2 revenue up 8% to $7.0 bln, beating analyst expectations
The automotive retailer's adjusted EPS rises 37% to $5.46, surpassing estimates, per LSEG data
Co completed $700 mln asset-backed securitization, boosting financial flexibility
Outlook
Company highlights strong cash flow generation and balance sheet for future growth
AutoNation emphasizes flexibility in cost structure to adapt to market conditions
AutoNation positions for continued capital deployment to enhance shareholder returns
Result Drivers
NEW VEHICLE SALES - Revenue from new vehicle sales increased by 9%, contributing to overall revenue growth
AFTER-SALES PROFIT - Record after-sales gross profit of $599 mln, up 12% year-over-year
FINANCIAL SERVICES - Customer financial services revenue rose 13%, reflecting increased unit sales and profitability
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$6.97 bln
$6.85 bln (11 Analysts)
Q2 Adjusted EPS
Beat
$5.46
$4.71 (11 Analysts)
Q2 EPS
$2.26
Q2 Adjusted Net Income
Beat
$209.20 mln
$183 mln (9 Analysts)
Q2 Net Income
$86.40 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $209.50, about 4.4% above its July 24 closing price of $200.25
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nPn6HqHPa
(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.)