AutoNation Inc. (AN - Free Report) reported earnings of 97 cents per share in first-quarter 2017, which increased from 90 cents in the first quarter of 2016. Earnings also surpassed the Zacks Consensus Estimate of 91 cents.
Net income rose to $98.1 million from $95.9 million in first-quarter 2016. However, operating income inched down 0.3% to $206.7 million from $207.4 million a year ago.
AutoNation reported revenues of $5.14 billion, up 0.4% year over year. However, revenues fell short of the Zacks Consensus Estimate of $5.31 billion.
New vehicle revenues were relatively in line at $2.8 billion, despite a 4.1% fall in new vehicle unit sales to 75,798 units. Revenues per vehicle retailed went up 4.1% to $36,890. On a same-store basis, new vehicle revenues declined 0.6% to $2.7 billion.
Used vehicle (retail and wholesale) revenues were also almost flat year over year at $1.24 billion with a 3.2% rise in the retail sector and 30.3% decline in the wholesale sector. Retail unit sales rose 4.3% to 60,608 vehicles, while revenues per vehicle retailed fell 1% to $19,075. On a same-store basis, used vehicle revenues improved 0.3% to $1.21 billion.
Revenues at the parts and service business advanced 3% to $845.1 million in the reported quarter. Meanwhile, the finance and insurance business recorded a 0.7% decrease in revenues to $221.6 million.
Segment Details
Revenues at the Domestic segment—comprising stores that sell vehicles manufactured by General Motors Co. (GM - Free Report) , Ford Motor Co. (F - Free Report) and others—declined 2.6% to $1.8 billion as retail new vehicle sales fell 5.3% to 26,259 units. The segment’s income fell 20.7% to $61.4 million in the quarter under review.
Revenues at the Import segment—consisting of stores that sell vehicles manufactured primarily by Toyota Motor Corp. (TM - Free Report) and other Japanese automakers—dipped 2.6% to $1.63 billion owing to a 4.1% fall in retail new vehicle unit sales to 34,315 automobiles. Segment income decreased 5.8% to $71.7 million in the reported quarter.
Revenues at the Premium Luxury segment—consisting of stores that sell vehicles manufactured primarily by Mercedes, BMW and Lexus—rose 5% to $1.62 billion. Retail new vehicle sales descended 1.7% to 15,224 luxury units. The segment's income declined 3% to $80.5 million in the reported quarter.
Balance Sheet and Capex
AutoNation’s cash and cash equivalents rose to $56.3 million as of Mar 31, 2017, from $47.8 million as of Mar 31, 2016. The company’s inventory was valued at $3.69 billion as of Mar 31, 2017, compared with $3.93 billion as of Mar 31, 2016.
Non-vehicle debt decreased to $2.55 billion from $2.68 billion as of Mar 31, 2016. Capital expenditures were $86.8 million in first-quarter 2017 compared with $50.7 million in the prior-year period.
Share Repurchases
In first-quarter 2017, the company did not repurchase any shares. As of Apr 25, 2017, AutoNation had approximately $299 million remaining under its share repurchase program and around 101 million shares outstanding.
Price Performance
In the last three months, AutoNation’s share price fell 16.7% while the Zacks categorized Retail/Wholesale Auto/Truck industry recorded an 11.8% decrease.
Zacks Rank
AutoNation currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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AutoNation Inc. (AN - Free Report) reported earnings of 97 cents per share in first-quarter 2017, which increased from 90 cents in the first quarter of 2016. Earnings also surpassed the Zacks Consensus Estimate of 91 cents.
Net income rose to $98.1 million from $95.9 million in first-quarter 2016. However, operating income inched down 0.3% to $206.7 million from $207.4 million a year ago.
AutoNation reported revenues of $5.14 billion, up 0.4% year over year. However, revenues fell short of the Zacks Consensus Estimate of $5.31 billion.
New vehicle revenues were relatively in line at $2.8 billion, despite a 4.1% fall in new vehicle unit sales to 75,798 units. Revenues per vehicle retailed went up 4.1% to $36,890. On a same-store basis, new vehicle revenues declined 0.6% to $2.7 billion.
Used vehicle (retail and wholesale) revenues were also almost flat year over year at $1.24 billion with a 3.2% rise in the retail sector and 30.3% decline in the wholesale sector. Retail unit sales rose 4.3% to 60,608 vehicles, while revenues per vehicle retailed fell 1% to $19,075. On a same-store basis, used vehicle revenues improved 0.3% to $1.21 billion.
Revenues at the parts and service business advanced 3% to $845.1 million in the reported quarter. Meanwhile, the finance and insurance business recorded a 0.7% decrease in revenues to $221.6 million.
Segment Details
Revenues at the Domestic segment—comprising stores that sell vehicles manufactured by General Motors Co. (GM - Free Report) , Ford Motor Co. (F - Free Report) and others—declined 2.6% to $1.8 billion as retail new vehicle sales fell 5.3% to 26,259 units. The segment’s income fell 20.7% to $61.4 million in the quarter under review.
Revenues at the Import segment—consisting of stores that sell vehicles manufactured primarily by Toyota Motor Corp. (TM - Free Report) and other Japanese automakers—dipped 2.6% to $1.63 billion owing to a 4.1% fall in retail new vehicle unit sales to 34,315 automobiles. Segment income decreased 5.8% to $71.7 million in the reported quarter.
Revenues at the Premium Luxury segment—consisting of stores that sell vehicles manufactured primarily by Mercedes, BMW and Lexus—rose 5% to $1.62 billion. Retail new vehicle sales descended 1.7% to 15,224 luxury units. The segment's income declined 3% to $80.5 million in the reported quarter.
Balance Sheet and Capex
AutoNation’s cash and cash equivalents rose to $56.3 million as of Mar 31, 2017, from $47.8 million as of Mar 31, 2016. The company’s inventory was valued at $3.69 billion as of Mar 31, 2017, compared with $3.93 billion as of Mar 31, 2016.
Non-vehicle debt decreased to $2.55 billion from $2.68 billion as of Mar 31, 2016. Capital expenditures were $86.8 million in first-quarter 2017 compared with $50.7 million in the prior-year period.
Share Repurchases
In first-quarter 2017, the company did not repurchase any shares. As of Apr 25, 2017, AutoNation had approximately $299 million remaining under its share repurchase program and around 101 million shares outstanding.
Price Performance
In the last three months, AutoNation’s share price fell 16.7% while the Zacks categorized Retail/Wholesale Auto/Truck industry recorded an 11.8% decrease.
Zacks Rank
AutoNation currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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