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AutoNation, Inc. (AN - Free Report) reported fourth-quarter 2023 adjusted earnings of $5.02 per share, which decreased 21.2% year over year but topped the Zacks Consensus Estimate of $4.85. This outperformance can be primarily attributed to higher-than-expected new vehicle and parts and service business revenues. In the reported quarter, revenues amounted to $6.8 billion, surpassing the Zacks Consensus Estimate of $6.65 billion. The company had recorded revenues of $6.7 billion in the fourth quarter of 2022. Revenues across the Import and Premium Luxury segment topped our projections.
AutoNation, Inc. Price, Consensus and EPS Surprise
In the reported quarter, new vehicle revenues were up 7% year over year to $3.4 billion and also exceeded our estimate of $3 billion on the back of stronger-than-expected volumes. New vehicle retail units sold totaled 64,748 units, topping our projection of 57,968 units. Average selling price (ASP) per new vehicle unit retailed came in at $52,000, down 0.8% year over year. Gross profit from the segment came in at $236.5 million, declining 30.1% year over year but marginally topping our estimate of $234.2 million.
Used-vehicle revenues contracted 12.1% from the year-ago figure to $1.9 billion and lagged our projection of $2.1 billion on lower-than-expected volumes. Used vehicle retail units sold totaled 65,151 units, missing our projection of 66,119 units. ASP per used vehicle unit retailed came in at $27,338, declining 8.2% year over year. Gross profit from the segment came in at $91.5 million, down 22.5% and lagging our projection of $121.8 million.
Net revenues in the finance and insurance business amounted to $347.4 million, which increased 0.6% from the year-ago quarter but missed our projection of $378 million. Gross profit was $347.4 million, up 0.6%. However, it missed our estimate of $378 million.
Revenues from the parts and service business rose 10.9% to $1.14 billion, topping our forecast of $1.08 billion. Gross profit from this segment came in at $539.9 million, rising 12.7% year over year and beating our estimate of $508.6 million.
Segmental Details
Revenues from the Domestic segment declined 4.1% year over year to $1.8 billion and lagged our projection of $1.88 billion. The segment’s income declined 38.5% to $73.9 million, missing our estimate of $98.1 million.
Revenues from the Import segment rose 6.6% from the prior-year quarter to $2 billion and outpaced our forecast of $1.91 billion. The segment’s income contracted 21.9% to $136.9 million and missed our projection of $143.1 million.
The Premium Luxury segment sales moved down 1.2% to $2.64 billion, outpacing our projection of $2.5 billion. The segmental income declined 20.9% year over year to $195.3 million in the reported quarter but topped our estimate of $188.7 million.
Financial Tidbits
AutoNation’s cash and cash equivalents were $60.8 million as of Dec 31, 2023, declining from $72.6 million recorded as of Dec 31, 2022. The company’s liquidity was $1.5 billion, including $61 million in cash and nearly $1.46 billion available under its revolving credit facility.
The firm’s inventory was valued at $3.03 billion. At the end of the fourth quarter, non-vehicle debt was $4.03 billion, which increased from $3.65 billion recorded as of 2022 end. Capital expenditure in the quarter amounted to $124.3 million.
During the fourth quarter of 2023, AutoNation repurchased 1.15 million shares of common stock for an aggregate purchase price of $151.2 million. As of Feb 9, 2024, AutoNation had approximately $320 million shares remaining under its buyback authorization.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The earnings per share (EPS) estimates for 2024 and 2025 have improved 22 cents each in the past 30 days.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.8% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved $1.27 and $1.70, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 8 cents and 30 cents, respectively, in the past 30 days.
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AutoNation (AN) Q4 Earnings Beat Expectations, Decline Y/Y
AutoNation, Inc. (AN - Free Report) reported fourth-quarter 2023 adjusted earnings of $5.02 per share, which decreased 21.2% year over year but topped the Zacks Consensus Estimate of $4.85. This outperformance can be primarily attributed to higher-than-expected new vehicle and parts and service business revenues. In the reported quarter, revenues amounted to $6.8 billion, surpassing the Zacks Consensus Estimate of $6.65 billion. The company had recorded revenues of $6.7 billion in the fourth quarter of 2022. Revenues across the Import and Premium Luxury segment topped our projections.
AutoNation, Inc. Price, Consensus and EPS Surprise
AutoNation, Inc. price-consensus-eps-surprise-chart | AutoNation, Inc. Quote
Key Takeaways
In the reported quarter, new vehicle revenues were up 7% year over year to $3.4 billion and also exceeded our estimate of $3 billion on the back of stronger-than-expected volumes. New vehicle retail units sold totaled 64,748 units, topping our projection of 57,968 units. Average selling price (ASP) per new vehicle unit retailed came in at $52,000, down 0.8% year over year. Gross profit from the segment came in at $236.5 million, declining 30.1% year over year but marginally topping our estimate of $234.2 million.
Used-vehicle revenues contracted 12.1% from the year-ago figure to $1.9 billion and lagged our projection of $2.1 billion on lower-than-expected volumes. Used vehicle retail units sold totaled 65,151 units, missing our projection of 66,119 units. ASP per used vehicle unit retailed came in at $27,338, declining 8.2% year over year. Gross profit from the segment came in at $91.5 million, down 22.5% and lagging our projection of $121.8 million.
Net revenues in the finance and insurance business amounted to $347.4 million, which increased 0.6% from the year-ago quarter but missed our projection of $378 million. Gross profit was $347.4 million, up 0.6%. However, it missed our estimate of $378 million.
Revenues from the parts and service business rose 10.9% to $1.14 billion, topping our forecast of $1.08 billion. Gross profit from this segment came in at $539.9 million, rising 12.7% year over year and beating our estimate of $508.6 million.
Segmental Details
Revenues from the Domestic segment declined 4.1% year over year to $1.8 billion and lagged our projection of $1.88 billion. The segment’s income declined 38.5% to $73.9 million, missing our estimate of $98.1 million.
Revenues from the Import segment rose 6.6% from the prior-year quarter to $2 billion and outpaced our forecast of $1.91 billion. The segment’s income contracted 21.9% to $136.9 million and missed our projection of $143.1 million.
The Premium Luxury segment sales moved down 1.2% to $2.64 billion, outpacing our projection of $2.5 billion. The segmental income declined 20.9% year over year to $195.3 million in the reported quarter but topped our estimate of $188.7 million.
Financial Tidbits
AutoNation’s cash and cash equivalents were $60.8 million as of Dec 31, 2023, declining from $72.6 million recorded as of Dec 31, 2022. The company’s liquidity was $1.5 billion, including $61 million in cash and nearly $1.46 billion available under its revolving credit facility.
The firm’s inventory was valued at $3.03 billion. At the end of the fourth quarter, non-vehicle debt was $4.03 billion, which increased from $3.65 billion recorded as of 2022 end. Capital expenditure in the quarter amounted to $124.3 million.
During the fourth quarter of 2023, AutoNation repurchased 1.15 million shares of common stock for an aggregate purchase price of $151.2 million. As of Feb 9, 2024, AutoNation had approximately $320 million shares remaining under its buyback authorization.
Zacks Rank & Key Picks
AN currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) , General Motors Company (GM - Free Report) and Oshkosh Corporation (OSK - Free Report) . MOD & GM sport a Zacks Rank #1 (Strong Buy) each, while OSK carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The earnings per share (EPS) estimates for 2024 and 2025 have improved 22 cents each in the past 30 days.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.8% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved $1.27 and $1.70, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 8 cents and 30 cents, respectively, in the past 30 days.