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AutoNation (AN) Q3 Earnings & Revenues Miss Estimates
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Shares of AutoNation Inc. (AN - Free Report) have lost approximately 4.4% in a day’s trading, following its third-quarter 2018 earnings release. During the quarter under review, the company reported adjusted earnings of $1.24 per share, missing the Zacks Consensus Estimate of $1.25. In the year-ago quarter, the bottom line was $1 per share.
Net income from continuing operations was $112 million compared with $98 million in third-quarter 2017.
During the quarter under review, AutoNation’s revenues declined 1.5% year over year to $5.35 billion. The top line also missed the Zacks Consensus Estimate of $5.57 billion.
AutoNation, Inc. Price, Consensus and EPS Surprise
During the reported quarter, new-vehicle revenues decreased 5.6% year over year to $2.9 billion in third-quarter 2018. Used-vehicle revenues rose 4.3% to $1.3 billion from the year-ago figure. Parts and service business revenues gained 2.7% to $864 million from third-quarter 2017. Net revenues from finance and insurance business were $247 million, reflecting rise of 2.4% from the prior-year quarter.
Segmental Details
Revenues at the Domestic segment — comprising stores that sell vehicles manufactured by General Motors, Ford and FCA US — declined 6.4% to $1.8 billion. The segment’s income decreased 2.6% to $67 million in the quarter under review.
Revenues at the Import segment — consisting of outlets that sell vehicles manufactured primarily by Toyota, Honda, Nissan and Hyundai — slumped 1.1% to $1.8 billion. However, the segment’s income gained 5.3% to $85 million in the reported quarter.
Revenues at the Premium Luxury segment comprise of stores that retail vehicles manufactured by Mercedes-Benz, BMW, Lexus, Jaguar Land Rover and Audi. The sales figure rose 2.1% to $1.7 billion. Segmental income declined 2.4% to $77 million in the reported quarter.
Balance Sheet and Capex
AutoNation’s cash and cash equivalents were $52.6 million as of Sep 30, 2018, declining from $69.2 million as of Dec 31, 2017. The company’s inventory was valued at $3.4 billion as of Sep 30, 2018, almost similar to the figure recorded as of Dec 31, 2017.
As of Mar 31, 2018, non-vehicle debt was $2.6 billion compared with $2.9 billion in the same period of 2017. At the end of third-quarter 2018, capital expenditure was $89 million compared with $56 million in the prior year.
Other Announcement
On Oct 30, AutoNation has announced that it made an investment of $50 million in Vroom Inc., a leading online car retailer. After the investment, AutoNation has an ownership stake of 7% in Vroom. The company’s investment is in sync with its strategy to invest in emerging digital technologies, both internally and externally.
AutoZone has an expected long-term growth rate of 12.2%. Over the past three months, shares of the company have moved up 6.6%.
CarMax has an expected long-term growth rate of 3.3%. Over the past six months, shares of the company have moved up 7.3%.
Cooper Tire has an expected long-term growth rate of 4%. Shares of the company have risen 12.1% over the past month.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
AutoNation (AN) Q3 Earnings & Revenues Miss Estimates
Shares of AutoNation Inc. (AN - Free Report) have lost approximately 4.4% in a day’s trading, following its third-quarter 2018 earnings release. During the quarter under review, the company reported adjusted earnings of $1.24 per share, missing the Zacks Consensus Estimate of $1.25. In the year-ago quarter, the bottom line was $1 per share.
Net income from continuing operations was $112 million compared with $98 million in third-quarter 2017.
During the quarter under review, AutoNation’s revenues declined 1.5% year over year to $5.35 billion. The top line also missed the Zacks Consensus Estimate of $5.57 billion.
AutoNation, Inc. Price, Consensus and EPS Surprise
AutoNation, Inc. Price, Consensus and EPS Surprise | AutoNation, Inc. Quote
During the reported quarter, new-vehicle revenues decreased 5.6% year over year to $2.9 billion in third-quarter 2018. Used-vehicle revenues rose 4.3% to $1.3 billion from the year-ago figure. Parts and service business revenues gained 2.7% to $864 million from third-quarter 2017. Net revenues from finance and insurance business were $247 million, reflecting rise of 2.4% from the prior-year quarter.
Segmental Details
Revenues at the Domestic segment — comprising stores that sell vehicles manufactured by General Motors, Ford and FCA US — declined 6.4% to $1.8 billion. The segment’s income decreased 2.6% to $67 million in the quarter under review.
Revenues at the Import segment — consisting of outlets that sell vehicles manufactured primarily by Toyota, Honda, Nissan and Hyundai — slumped 1.1% to $1.8 billion. However, the segment’s income gained 5.3% to $85 million in the reported quarter.
Revenues at the Premium Luxury segment comprise of stores that retail vehicles manufactured by Mercedes-Benz, BMW, Lexus, Jaguar Land Rover and Audi. The sales figure rose 2.1% to $1.7 billion. Segmental income declined 2.4% to $77 million in the reported quarter.
Balance Sheet and Capex
AutoNation’s cash and cash equivalents were $52.6 million as of Sep 30, 2018, declining from $69.2 million as of Dec 31, 2017. The company’s inventory was valued at $3.4 billion as of Sep 30, 2018, almost similar to the figure recorded as of Dec 31, 2017.
As of Mar 31, 2018, non-vehicle debt was $2.6 billion compared with $2.9 billion in the same period of 2017. At the end of third-quarter 2018, capital expenditure was $89 million compared with $56 million in the prior year.
Other Announcement
On Oct 30, AutoNation has announced that it made an investment of $50 million in Vroom Inc., a leading online car retailer. After the investment, AutoNation has an ownership stake of 7% in Vroom. The company’s investment is in sync with its strategy to invest in emerging digital technologies, both internally and externally.
Zacks Rank and Stocks to Consider
AutoNation currently carries a Zacks Rank #4 (Sell). A few better-ranked stocks in the auto space are AutoZone, Inc. (AZO - Free Report) , CarMax, Inc. (KMX - Free Report) and Cooper Tire & Rubber Company , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AutoZone has an expected long-term growth rate of 12.2%. Over the past three months, shares of the company have moved up 6.6%.
CarMax has an expected long-term growth rate of 3.3%. Over the past six months, shares of the company have moved up 7.3%.
Cooper Tire has an expected long-term growth rate of 4%. Shares of the company have risen 12.1% over the past month.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>