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What's in Store for AutoNation (AN) this Earnings Season?
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AutoNation, Inc. (AN - Free Report) is set to release its second-quarter 2016 results on Jul 29. Last quarter, the company posted a positive earnings surprise of 3.23%. Let’s see how things have shaped up for the forthcoming announcement.
Factors Influencing this Quarter
AutoNation is positioned to benefit from the 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 are building a strong sales environment. In addition, the company is poised to benefit from the expansion of its business through acquisitions.
However, AutoNation operates in a highly competitive industry. The company competes on the basis of location, service, price, selection, and online and mobile offerings. Also, its performance is dependent on automakers. Any fluctuation in supply can adversely affect the results of the company.
Earnings Whispers
Our proven model does not conclusively show that AutoNation is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: The Earnings ESP represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate. AutoNation’s Earnings ESP is 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.05.
Zacks Rank: AutoNation carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Westport Fuel Systems Inc. (WPRT - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Aug 3.
Magna International Inc. (MGA - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Aug 5.
Visteon Corporation (VC - Free Report) has an Earnings ESP of +5.97% and a Zacks Rank #3. The company’s second-quarter 2016 results are expected to release on Jul 28.
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What's in Store for AutoNation (AN) this Earnings Season?
AutoNation, Inc. (AN - Free Report) is set to release its second-quarter 2016 results on Jul 29. Last quarter, the company posted a positive earnings surprise of 3.23%. Let’s see how things have shaped up for the forthcoming announcement.
Factors Influencing this Quarter
AutoNation is positioned to benefit from the 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 are building a strong sales environment. In addition, the company is poised to benefit from the expansion of its business through acquisitions.
However, AutoNation operates in a highly competitive industry. The company competes on the basis of location, service, price, selection, and online and mobile offerings. Also, its performance is dependent on automakers. Any fluctuation in supply can adversely affect the results of the company.
Earnings Whispers
Our proven model does not conclusively show that AutoNation is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: The Earnings ESP represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate. AutoNation’s Earnings ESP is 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.05.
AUTONATION INC Price and EPS Surprise
AUTONATION INC Price and EPS Surprise | AUTONATION INC Quote
Zacks Rank: AutoNation carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Westport Fuel Systems Inc. (WPRT - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Aug 3.
Magna International Inc. (MGA - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3. The company’s second-quarter 2016 financial results are expected to release on Aug 5.
Visteon Corporation (VC - Free Report) has an Earnings ESP of +5.97% and a Zacks Rank #3. The company’s second-quarter 2016 results are expected to release on Jul 28.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>