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AutoNation's (AN) Q2 Earnings & Revenues Miss, Down Y/Y

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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.

AutoNation, Inc. Price, Consensus and EPS Surprise

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

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