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AutoNation (AN) to Report Q4 Earnings: What's in the Cards?
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AutoNation, Inc. (AN - Free Report) is slated to release fourth-quarter 2020 results on Feb 16, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $2 on revenues of $5.61 billion.
AutoNation, the largest automotive retailer in the United States, delivered better-than-expected results in the last reported quarter on stellar revenues from new and used vehicles.
Over the preceding four quarters, the company surpassed the Zacks Consensus Estimate on all occasions, the average surprise being 95.4%. This is depicted in the graph below:
Our model also indicates an earnings beat for AutoNation this time as well.
Trend in Estimate Revisions
The Zacks Consensus Estimate for AutoNation’s fourth-quarter earnings per share has been revised downward by 2 cents in the past 30 days. Nonetheless, it compares favorably with the year-ago quarter’s earnings of $1.31 per share. Moreover, the Zacks Consensus Estimate for quarterly revenues suggests a marginal year-over-year rise of 1.04%.
Earnings Whispers
Our proven model predicts an earnings beat for AutoNation this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This has been elaborated below.
Earnings ESP: AutoNation has an Earnings ESP of +3.82%. This is because the Most Accurate Estimate is pegged eight cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
With the economy gradually recovering from the pandemic blues, auto sales across the globe have managed to rebound steadily, highlighted by the rising momentum of new vehicle sales. This is likely to have boosted AutoNation’s revenues generated from the new vehicle segment, which usually makes the highest contribution to total revenues.
The Zacks Consensus Estimate for sales of new vehicles for the period in discussion is pegged at $2,932 million, up from the previous quarter’s $2,748 million. In fact, the consensus mark for gross profit for the segment is pinned at $176 million, indicating an increase from the $167 million recorded in the previous quarter.
Encouragingly, AutoNation’s focus on the used vehicle market is likely to have buoyed the company’s earnings during the quarter to be reported. The Zacks Consensus Estimate for quarterly revenues from the used-vehicles segment is pegged at $1,404 million, suggesting a rise from the $1,345 million seen in the year-ago quarter. In addition, the consensus mark for gross profit from the segment is pegged at $121 million, calling for a jump from the prior-year quarter’s $88 million.
Also, the consensus estimate for quarterly revenues from the parts and services segment is pinned at $871 million, indicating a rise from the $853 million registered in the prior quarter. Additionally, the consensus mark for the gross profit of the segment is pegged at $400 million, calling for a surge from the $376 million reported in the last quarter.
Further, AutoNation’s heightened focus on providing enhanced digital solutions in response to the evolving buying behaviors of consumers is anticipated to have fueled sales during the quarter in discussion. Apart from this, the auto retailer’s cost-containment efforts in the wake of the pandemic are likely to have aided the margins during the October-December period.
Other Stocks to Consider
Along with AutoNation, here are a few other stocks worth considering, as these too have the right combination of elements to come up with an earnings beat this time around:
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +7.44% and carries a Zacks Rank #3 at present. The company will announce fourth-quarter 2020 results on Feb 17.
LKQ Corporation (LKQ - Free Report) has an Earnings ESP of +5.48% and carries a Zacks Rank #3, currently. The company is scheduled to report quarterly numbers on Feb 18.
Magna International (MGA - Free Report) has an Earnings ESP of +5.42% and currently flaunts a Zacks Rank of 1. The company is slated to release earnings results on Feb 19.
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Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
AutoNation (AN) to Report Q4 Earnings: What's in the Cards?
AutoNation, Inc. (AN - Free Report) is slated to release fourth-quarter 2020 results on Feb 16, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $2 on revenues of $5.61 billion.
AutoNation, the largest automotive retailer in the United States, delivered better-than-expected results in the last reported quarter on stellar revenues from new and used vehicles.
Over the preceding four quarters, the company surpassed the Zacks Consensus Estimate on all occasions, the average surprise being 95.4%. This is depicted in the graph below:
AutoNation, Inc. Price and EPS Surprise
AutoNation, Inc. price-eps-surprise | AutoNation, Inc. Quote
Our model also indicates an earnings beat for AutoNation this time as well.
Trend in Estimate Revisions
The Zacks Consensus Estimate for AutoNation’s fourth-quarter earnings per share has been revised downward by 2 cents in the past 30 days. Nonetheless, it compares favorably with the year-ago quarter’s earnings of $1.31 per share. Moreover, the Zacks Consensus Estimate for quarterly revenues suggests a marginal year-over-year rise of 1.04%.
Earnings Whispers
Our proven model predicts an earnings beat for AutoNation this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This has been elaborated below.
Earnings ESP: AutoNation has an Earnings ESP of +3.82%. This is because the Most Accurate Estimate is pegged eight cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AutoNation currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note
With the economy gradually recovering from the pandemic blues, auto sales across the globe have managed to rebound steadily, highlighted by the rising momentum of new vehicle sales. This is likely to have boosted AutoNation’s revenues generated from the new vehicle segment, which usually makes the highest contribution to total revenues.
The Zacks Consensus Estimate for sales of new vehicles for the period in discussion is pegged at $2,932 million, up from the previous quarter’s $2,748 million. In fact, the consensus mark for gross profit for the segment is pinned at $176 million, indicating an increase from the $167 million recorded in the previous quarter.
Encouragingly, AutoNation’s focus on the used vehicle market is likely to have buoyed the company’s earnings during the quarter to be reported. The Zacks Consensus Estimate for quarterly revenues from the used-vehicles segment is pegged at $1,404 million, suggesting a rise from the $1,345 million seen in the year-ago quarter. In addition, the consensus mark for gross profit from the segment is pegged at $121 million, calling for a jump from the prior-year quarter’s $88 million.
Also, the consensus estimate for quarterly revenues from the parts and services segment is pinned at $871 million, indicating a rise from the $853 million registered in the prior quarter. Additionally, the consensus mark for the gross profit of the segment is pegged at $400 million, calling for a surge from the $376 million reported in the last quarter.
Further, AutoNation’s heightened focus on providing enhanced digital solutions in response to the evolving buying behaviors of consumers is anticipated to have fueled sales during the quarter in discussion. Apart from this, the auto retailer’s cost-containment efforts in the wake of the pandemic are likely to have aided the margins during the October-December period.
Other Stocks to Consider
Along with AutoNation, here are a few other stocks worth considering, as these too have the right combination of elements to come up with an earnings beat this time around:
Allison Transmission Holdings (ALSN - Free Report) has an Earnings ESP of +7.44% and carries a Zacks Rank #3 at present. The company will announce fourth-quarter 2020 results on Feb 17.
LKQ Corporation (LKQ - Free Report) has an Earnings ESP of +5.48% and carries a Zacks Rank #3, currently. The company is scheduled to report quarterly numbers on Feb 18.
Magna International (MGA - Free Report) has an Earnings ESP of +5.42% and currently flaunts a Zacks Rank of 1. The company is slated to release earnings results on Feb 19.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>