AutoNation Q4 Earnings Surpass Expectations, Decrease Y/Y

AutoNation, Inc. AN reported fourth-quarter 2024 adjusted earnings of $4.97 per share, which decreased 1% year over year but beat the Zacks Consensus Estimate of $4.26. In the fourth quarter, revenues amounted to $7.21 billion, which surpassed the Zacks Consensus Estimate of $6.64 billion and rose from $6.77 billion reported in the fourth quarter of 2023.See the Zacks Earnings Calendar to stay ahead of market-making news.AutoNation, Inc. Price, Consensus and EPS Surprise AutoNation, Inc. price-consensus-eps-surprise-chart | AutoNation, Inc. QuoteKey TakeawaysIn the reported quarter, new vehicle revenues were up 12.1% year over year to $3.78 billion and topped our estimate of $3.12 billion due to higher-than-expected sales volume and average selling price (ASP). New vehicle retail units sold totaled 71,434 units (up 10.3% year over year), beating our projection of 60,949 units. The ASP per new vehicle unit retailed was $52,849 (up 1.6% year over year), beating our estimate of $51,301. Gross profit from the segment came in at $212.1 million, which declined 10.3% year over year but beat our estimate of $135.1 million.Retail used-vehicle revenues contracted 1.3% from the year-ago quarter’s figure to $1.76 billion but surpassed our projection of $1.60 billion due to higher-than-expected sales volume and ASP. Used vehicle retail units sold totaled 64,829 units (down 0.5% year over year), outpacing our projection of 61,823 units. ASP per used vehicle unit retailed came in at $27,119 (down 0.8% year over year) and topped our projection of $25,949. Gross profit from the segment came in at $99.7 million, which rose 5.2% and beat our projection of $76.6 million.Revenues from wholesale used vehicles were up 22.9% to $153.2 million and surpassed our estimate of $123.4 million. Gross profit rose to $4.7 million from a gross loss of $3.3 million and topped our estimate of $0.4 million. Net revenues in the finance and insurance business amounted to $366 million, which increased 5.4% from the year-ago quarter but missed our projection of $368 million. Gross profit was $366 million, which increased 5.4% but missed our estimate of $368 million.Revenues from the parts and service business rose 1.1% to $1.15 billion but missed our estimate of $1.27 billion. Gross profit from this segment came in at $558.4 million, which rose 3.4% year over year but missed our estimate of $602.3 million.Segmental DetailsRevenues from the Domestic segment rose 3.7% year over year to $1.87 billion and topped our projection of $1.75 billion. The segment’s income plunged 9.3% to $67 million but topped     our estimate of $62.8 million.Revenues from the Import segment increases 4.7% from the prior-year quarter to $2.11 billion and topped our forecast of $2 billion. The segment’s income contracted 12% to $120.5 million but surpassed our model estimate of $119 million.  The Premium Luxury segment sales rose 9.7% to $2.9 billion, surpassing our projection of $2.40 billion. The segmental income rose 6.3% year over year to $207.6 million in the reported quarter and topped our estimate of $159.9 million.Financial TidbitsAutoNation’s cash and cash equivalents were $59.8 million as of Dec. 31, 2024. The company’s liquidity was $1.3 billion, including $60 million in cash and nearly $1.3 billion available under its revolving credit facility.The firm’s inventory was valued at $3.36 billion. At the end of the fourth quarter, non-vehicle debt was $3.76 billion. Capital expenditure in the quarter was $66.3 million.During the fourth quarter of 2023, AutoNation repurchased 600,000 shares of common stock for an aggregate purchase price of $104 million. In 2024, the company bought back 2.9 million shares for $460 million. As of Dec. 31, 2024, it had $861 million remaining under its share repurchase program.AN’s Zacks Rank & Key PicksAutoNation carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Dana Incorporated DAN and Allison Transmission Holdings, Inc. ALSN. While GELYY & DAN sport a Zacks Rank #1 (Strong Buy) each, ALSN 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 GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 60 days. The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 79.17%. EPS estimates for 2025 have improved by 20 cents in the past 30 days.The Zacks Consensus Estimate for ALSN’s 2025 sales and earnings indicates year-over-year growth of 6.67% and 12.17%, respectively. EPS estimates for 2025 have improved 3 cents in the past 30 days.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoNation, Inc. (AN): Free Stock Analysis Report Dana Incorporated (DAN): Free Stock Analysis Report Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks