AutoNation Inc. (AN - Free Report) reported earnings of 86 cents per share in second-quarter 2017, which decreased from $1.08 in the second quarter of 2016. Earnings also missed the Zacks Consensus Estimate of 98 cents.
Net income from continuing operations declined to $88 million from $112 million in second-quarter 2016.
During the quarter, AutoNation reported revenues of $5.28 billion, declining 3% year over year. Also, revenues missed the Zacks Consensus Estimate of $5.57 billion.
New vehicle revenues decreased to $2.93 billion in second-quarter 2017. Used vehicle revenues also declined 4.6% year over year to $1.2 billion. Revenues at the parts and service business advanced 2.7% to $857.5 million in the reported quarter. The finance and insurance business also registered a 1.5% increase in revenues to $228.8 million.
Along with the earnings release, AutoNation announced the acquisition of Alpine Jaguar in Ft. Lauderdale, FL. This represents around $68 million in annual revenue. It also marks the company’s first Jaguar franchise in South Florida market.
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 7.5%. The segment’s income fell 29.8% to $60.1 million in the quarter under review.
Revenues at the Import segment — comprising stores that sell vehicles manufactured primarily by Toyota Motor Corp. (TM - Free Report) and other automakers —dipped 2.6% to $1.7 billion. However, segment income rose 0.9% to $75.3 million in the reported quarter.
Revenues at the Premium Luxury segment — consisting of stores that sell vehicles manufactured primarily by Mercedes, BMW and Lexus — remained almost flat at $1.64 billion. The segment’s income declined 9.7% to $83.9 million in the reported quarter.
Balance Sheet and Capex
AutoNation’s cash and cash equivalents were $52.5 million as of Jun 30, 2017, down from $54.7 million as of Jun 30, 2016. The company’s inventory was valued at $3.71 billion as of Jun 30, 2017 compared with $3.66 billion as of Jun 30, 2016.
Non-vehicle debt decreased to $2.57 billion from $2.71 billion as of Jun 30, 2016. Capital expenditures were $82 million in second-quarter 2017 compared with $61.7 million in the prior-year period.
Share Repurchases
In second-quarter 2017, the company repurchased 0.9 million shares for $34.9 million. As of Jul 31, 2017, AutoNation had approximately $264 million remaining under its share repurchase program and around 100 million shares outstanding.
Zacks Rank
AutoNation and General Motors currently hold a Zacks Rank #4 (Sell), while Ford and Toyota carry 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 86 cents per share in second-quarter 2017, which decreased from $1.08 in the second quarter of 2016. Earnings also missed the Zacks Consensus Estimate of 98 cents.
Net income from continuing operations declined to $88 million from $112 million in second-quarter 2016.
During the quarter, AutoNation reported revenues of $5.28 billion, declining 3% year over year. Also, revenues missed the Zacks Consensus Estimate of $5.57 billion.
New vehicle revenues decreased to $2.93 billion in second-quarter 2017. Used vehicle revenues also declined 4.6% year over year to $1.2 billion. Revenues at the parts and service business advanced 2.7% to $857.5 million in the reported quarter. The finance and insurance business also registered a 1.5% increase in revenues to $228.8 million.
Along with the earnings release, AutoNation announced the acquisition of Alpine Jaguar in Ft. Lauderdale, FL. This represents around $68 million in annual revenue. It also marks the company’s first Jaguar franchise in South Florida market.
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 7.5%. The segment’s income fell 29.8% to $60.1 million in the quarter under review.
Revenues at the Import segment — comprising stores that sell vehicles manufactured primarily by Toyota Motor Corp. (TM - Free Report) and other automakers —dipped 2.6% to $1.7 billion. However, segment income rose 0.9% to $75.3 million in the reported quarter.
Revenues at the Premium Luxury segment — consisting of stores that sell vehicles manufactured primarily by Mercedes, BMW and Lexus — remained almost flat at $1.64 billion. The segment’s income declined 9.7% to $83.9 million in the reported quarter.
Balance Sheet and Capex
AutoNation’s cash and cash equivalents were $52.5 million as of Jun 30, 2017, down from $54.7 million as of Jun 30, 2016. The company’s inventory was valued at $3.71 billion as of Jun 30, 2017 compared with $3.66 billion as of Jun 30, 2016.
Non-vehicle debt decreased to $2.57 billion from $2.71 billion as of Jun 30, 2016. Capital expenditures were $82 million in second-quarter 2017 compared with $61.7 million in the prior-year period.
Share Repurchases
In second-quarter 2017, the company repurchased 0.9 million shares for $34.9 million. As of Jul 31, 2017, AutoNation had approximately $264 million remaining under its share repurchase program and around 100 million shares outstanding.
Zacks Rank
AutoNation and General Motors currently hold a Zacks Rank #4 (Sell), while Ford and Toyota carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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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