What's Next: AutoNation's Earnings Preview

AutoNation AN will release its quarterly earnings report on Friday, 2024-10-25. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate AutoNation to report an earnings per share (EPS) of $4.57.

The market awaits AutoNation's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings History Snapshot

Last quarter the company missed EPS by $0.35, which was followed by a 3.55% drop in the share price the next day.

Here's a look at AutoNation's past performance and the resulting price change:

AutoNation Share Price Analysis

Shares of AutoNation were trading at $162.0 as of October 23. Over the last 52-week period, shares are up 24.21%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on AutoNation

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on AutoNation.

A total of 7 analyst ratings have been received for AutoNation, with the consensus rating being Neutral. The average one-year price target stands at $191.86, suggesting a potential 18.43% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Valvoline, Group 1 Automotive and Asbury Automotive Gr, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The consensus among analysts is an Outperform trajectory for Valvoline, with an average 1-year price target of $47.75, indicating a potential 70.52% downside.
• As per analysts' assessments, Group 1 Automotive is favoring an Outperform trajectory, with an average 1-year price target of $377.8, suggesting a potential 133.21% upside.
• The consensus outlook from analysts is an Neutral trajectory for Asbury Automotive Gr, with an average 1-year price target of $243.2, indicating a potential 50.12% upside.

Analysis Summary for Peers

The peer analysis summary presents essential metrics for Valvoline, Group 1 Automotive and Asbury Automotive Gr, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

AutoNation ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. AutoNation is at the bottom for Return on Equity.

Discovering AutoNation: A Closer Look

AutoNation is the second largest automotive dealer in the United States, with 2023 revenue of about $27 billion and over 250 dealerships, plus 53 collision centers. The firm also has 23 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors all across 21 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) spun off its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which has proved to be a smart move.

Financial Milestones: AutoNation's Journey

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Challenges: AutoNation's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -5.95%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: AutoNation's net margin is impressive, surpassing industry averages. With a net margin of 2.01%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): AutoNation's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.73% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): AutoNation's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.05% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: AutoNation's debt-to-equity ratio is below the industry average. With a ratio of 4.05, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for AutoNation visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.