Back to top

Image: Bigstock

AutoNation (AN) Q4 Earnings Miss Estimates, Fall Y/Y

Read MoreHide Full Article

AutoNation Inc. (AN - Free Report) is the largest automotive retailer in the U.S. and is about twice the size of its nearest competitor. The company is positioned to benefit from 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 is leading to a strong selling environment.

However, AutoNation operates in a highly competitive industry. In addition, the company is dependent on automakers for new vehicle inventory. Thus, any fluctuation in supply can adversely affect the results of the company.

Estimate Trend & Surprise History

Investors should note that the fourth-quarter earnings estimates for AutoNation have been stable over the past month.

The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed in two quarter. As a result, it has an average negative surprise of around 1.28% for the last four quarter. Thus, investors are eagerly awaiting AutoNation’s latest earnings report to see how it performs this time.

We have highlighted some of the key stats from this just-revealed announcement below:
 

AutoNation, Inc. Price and EPS Surprise

AutoNation, Inc. Price and EPS Surprise | AutoNation, Inc. Quote

Earnings

AutoNation delivered adjusted earnings of 95 cents per share in the fourth quarter of 2016, which decreased from 96 cents recorded in the fourth quarter of 2015. Adjusted earnings also missed the Zacks Consensus Estimate of 97 cents.

Revenues

AutoNation reported revenues of $5.48 billion, up 2.6% year over year. However, revenues missed the Zacks Consensus Estimate of $5.59 billion.

Key Stats/Developments to Note

During 2016, the company repurchased 10.5 million shares for $497 million. As of Feb 1, 2017, AutoNation had approximately $299 million remaining under its share repurchase program and around 101 million shares outstanding.

Zacks Rank

Currently, AutoNation has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank stocks here.

Market Reaction

AutoNation’s shares have been rising in pre-market trading following the release. Clearly, the initial reaction to the release is positive.

Check back later for our full write up on AutoNation’s earnings report!

The Best Place to Start Your Stock Search

Today, you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AutoNation, Inc. (AN) - free report >>

Published in