AutoNation Q2 revenue, adjusted EPS beat estimates

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

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