Core Viewpoint - AutoNation (AN) is expected to report quarterly earnings of $4.25 per share, reflecting a decline of 5.4% year-over-year, while revenues are forecasted to increase by 0.6% to $6.52 billion [1] Earnings Estimates - The consensus EPS estimate has been adjusted upward by 1% over the past 30 days, indicating a reassessment by analysts [1][2] Revenue Projections - Analysts estimate 'Revenue- Parts and service' at $1.24 billion, showing a year-over-year increase of 5.4% [3] - 'Revenue- Finance and insurance net' is projected to reach $334.26 million, a slight decrease of 0.1% from the previous year [4] - 'Revenue- Used Vehicle' is expected to be $1.92 billion, indicating a decline of 3.9% year-over-year [4] - 'Revenue- New Vehicle' is forecasted at $2.97 billion, reflecting a decrease of 0.4% compared to the prior year [4] Vehicle Sales Estimates - 'Retail vehicle unit sales - New' are expected to reach 60,200, up from 58,863 year-over-year [5] - 'Retail vehicle unit sales - Used' are projected at 69,064, slightly down from 69,121 in the previous year [6] - Total 'Retail vehicle unit sales' are estimated at 129,263, compared to 127,984 reported last year [7] Profitability Metrics - 'Revenue per vehicle retailed - New' is expected to be $48,553.82, down from $50,614 year-over-year [5] - 'Gross profit per vehicle retailed - Finance and insurance' is projected at $2,596.50, compared to $2,615 in the same quarter last year [6] - 'Gross profit per vehicle retailed - Used' is estimated at $1,415.61, down from $1,473 year-over-year [7] - 'Gross profit per vehicle retailed - New' is expected to be $2,342.75, significantly lower than $3,328 reported last year [8] Stock Performance - AutoNation shares have decreased by 6.7% over the past month, while the Zacks S&P 500 composite has declined by 8.9% [9]

Core Viewpoint - AutoNation (AN) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended March 2025, with the consensus outlook indicating a potential impact on its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for release on April 25, 2025, and could lead to a stock price increase if results exceed expectations, while missing estimates may result in a decline [2]. - The Zacks Consensus Estimate predicts quarterly earnings of $4.22 per share, reflecting a year-over-year decrease of 6%, with revenues expected at $6.44 billion, down 0.7% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.69% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for AutoNation is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +3.32%, suggesting a bullish outlook on earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - AutoNation's recent surprise history shows it beat consensus EPS estimates two out of the last four quarters, with a notable surprise of +16.67% in the last reported quarter [12][13]. Industry Comparison - Sonic Automotive (SAH), another player in the automotive retail industry, is expected to post earnings of $1.38 per share for the same quarter, indicating a year-over-year increase of 1.5%, with revenues projected at $3.47 billion, up 2.6% [17]. - Sonic Automotive's consensus EPS estimate has remained unchanged, but a lower Most Accurate Estimate results in a negative Earnings ESP of -1.82%, making it challenging to predict an earnings beat [18].

Core Insights - AutoNation, Inc. will release its financial results for Q1 2025 on April 25, 2025, before market opens [1] - A conference call to discuss these results will take place on the same day at 9:00 a.m. Eastern Time [1][2] Company Overview - AutoNation is one of the largest automotive retailers in the United States, providing a wide range of new and used vehicles, customer financing, parts, and maintenance services [3] - The company has raised over $40 million for cancer-related causes through its initiative DRV PNK, showcasing its commitment to community support [3]

Core Insights - Pinnacle Mergers & Acquisitions successfully facilitated the sale of Groove Ford and Groove Mazda to AutoNation, enhancing AutoNation's presence in the Colorado automotive market [1][2] - This transaction is part of a broader trend of consolidation in the U.S. auto retail sector, as large dealer groups expand into key regional markets [4] Company Highlights - Pinnacle has a strong track record in Colorado, having completed multiple high-profile dealership transactions, including previous deals with Lithia Motors and John Elway Dealership Group [3] - The firm has completed over 850 dealership transactions nationwide, totaling $40 billion, showcasing its expertise and market presence [5] Industry Trends - The Denver metro area is identified as one of the most active regions for automotive M&A activity, driven by strong dealership valuations and high buyer interest [4]

Group 1: Acquisition Details - AutoNation, Inc. completed the acquisition of Groove Ford and Groove Mazda dealerships, effective March 31, 2025, rebranding them as AutoNation Ford Arapahoe and AutoNation Mazda Arapahoe, with nearly 5,000 vehicles sold in 2024 generating approximately $219 million in annual revenues [1][2] - The acquisition expands AutoNation's presence in Colorado to a total of 13 Domestic, six Import, and three AutoNation USA dealerships, primarily in the greater Denver area [2] Group 2: Strategic Alignment - The acquisitions align with AutoNation's strategy of strengthening its footprint in existing markets, allowing the company to leverage operational efficiencies and enhance performance [3] - Strategic acquisitions, including those of Priority 1 Automotive and Peacock Automotive's 11 dealerships, have boosted AutoNation's annualized revenues [4] Group 3: Financial Performance - The acquisition of four dealerships from Moreland Auto Group and RepairSmith has fueled AutoNation's annual revenues, with reported revenues of $7.21 billion in Q4 2024, up from $6.77 billion in Q4 2023 [5]

Please visit www.autonation.com, investors.autonation.com, and www.x.com/autonation, where AutoNation discloses additional information about the Company, its business, and its results of operations. Forward-Looking Statements This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, fo ...

Denton and Gulf Freeway stores join six other pre-owned vehicle retail stores in Texas `             FORT LAUDERDALE, Fla., March 3, 2025 /PRNewswire/ -- AutoNation (NYSE: AN), one of the largest automotive retailers in the U.S., announced the grand opening of AutoNation USA stores in Denton and Houston, the company's seventh and eighth pre-owned vehicle retail stores in Texas, bringing the total number to 26 nationwide.Statewide, AutoNation USA now operates three stores in the greater Houston area, two in ...

Financial Performance - For the year ended December 31, 2024, net income was $692.2 million, with diluted earnings per share of $16.92, compared to net income of $1.0 billion and diluted earnings per share of $22.74 in 2023[172]. - Total revenue for 2024 was $26,765.4 million, a decrease of $183.5 million or 0.7% compared to 2023[221]. - Gross profit for 2024 was $4,785.4 million, a decline of 6.73% from $5,131.5 million in 2023[330]. - Operating income fell by $346.4 million or 21.0% to $1,305.5 million in 2024[192]. - Net income from continuing operations for 2024 was $692.2 million, a decrease of 32.2% compared to $1,020.2 million in 2023[330]. Revenue Breakdown - New vehicle sales accounted for 49% of total revenue and 16% of total gross profit, while used vehicle sales accounted for 29% of total revenue and 9% of total gross profit[168]. - New vehicle revenue increased to $13,048.2 million in 2024, up 2.2% from $12,767.4 million in 2023[330]. - Used vehicle revenue decreased to $7,719.9 million in 2024, down 5.8% from $8,198.5 million in 2023[330]. - Parts and service revenue increased by $110.5 million or 2.5% to $4,503.5 million, contributing to a gross profit margin of 46.1%[196][197]. Sales Performance - Retail vehicle unit sales for new vehicles increased by 10,169 units or 4.2% to 254,715 units in 2024, while used vehicle sales decreased by 8,111 units or 3.0% to 265,908 units[192]. - Retail new vehicle unit sales increased to 254,715 in 2024, up 10,169 units or 4.2% from 2023[223]. - Retail used vehicle unit sales decreased to 265,908 in 2024, down 8,111 units or 3.0% from 2023[223]. Inventory and Supply - New vehicle inventory units increased to approximately 42,600 as of December 31, 2024, compared to 35,300 in 2023[178]. - Days supply for new vehicles increased to 39 days in 2024 from 36 days in 2023, while used vehicle supply decreased to 37 days from 39 days[193]. - The net new vehicle inventory carrying expense increased to $(73.8) million in 2024, compared to $(6.3) million in 2023, primarily due to higher floorplan interest expense[204]. Expenses and Costs - Total gross profit decreased by 7% in 2024, driven by a 27% decrease in new vehicle gross profit and a 14% decrease in used vehicle gross profit[173]. - Selling, general, and administrative expenses as a percentage of revenue remained stable at 12.2% in 2024 compared to 12.1% in 2023[193]. - SG&A expenses totaled $3,263.9 million in 2024, an increase of $10.7 million (0.3%) from 2023[242]. Segment Performance - Segment income for Domestic decreased to $254.9 million in 2024, down $160.5 million or 38.6% from 2023, impacted by lower gross profits across new and used vehicles[225]. - Segment income for Import fell to $476.6 million in 2024, a decrease of $158.4 million or 24.9% compared to 2023, primarily due to reduced new vehicle gross profit margins[229]. - Premium Luxury total revenue decreased by $126.5 million (1.2%) in 2024 compared to 2023, primarily due to declines in new and used vehicle revenue[231]. Cash Flow and Debt - Net cash provided by operating activities decreased to $314.7 million in 2024 from $724.0 million in 2023, a decline of 56.5%[274]. - As of December 31, 2024, total long-term debt, net of current maturities, was $2.6 billion, down from $3.1 billion in 2023[266]. - The company reported a net cash used in financing activities of $300.6 million in 2024, compared to $172.5 million in 2023, indicating a significant increase in cash outflow[337]. Strategic Initiatives - The company is investing significantly in strategic initiatives, including the expansion of its AutoNation Finance business and AutoNation USA used vehicle stores[56]. - The company continues to grow its AutoNation Finance business, increasing finance penetration rates associated with vehicles sold through its stores[282]. Cybersecurity and Operational Risks - The company relies on information technology and is exposed to cybersecurity risks that could disrupt operations and impact financial results[56]. - The CDK outage negatively impacted same store unit volume and productivity in vehicle sales and service processes in the latter half of June 2024[207]. Market Conditions - The automotive retail industry remains sensitive to economic conditions, impacting vehicle sales and profit margins[293]. - The U.S. industry new vehicle unit sales increased to 16.0 million in 2024 from 15.6 million in 2023, indicating a recovery in market conditions[169].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $7.2 billion, an increase of 7% year-over-year, and 8% on a same-store basis [28] - Gross profit was $1.24 billion, up 5% sequentially and 3% year-over-year on a same-store basis [29] - Adjusted net income was $199 million, compared to $216 million a year ago, with adjusted EPS at $4.97, five cents below Q4 2023 [33] Business Line Data and Key Metrics Changes - New vehicle sales saw a 12% same-store unit volume growth, with domestic segment sales up 17% and premium luxury segment sales up 12% [21][22] - Used vehicle gross profit increased by 14% year-over-year, driven by improved inventory management [22] - AutoNation Finance originated $1.1 billion in loans during 2024, with a portfolio now exceeding $1.1 billion and a delinquency rate of less than 3% [12][48] Market Data and Key Metrics Changes - Hybrid vehicle sales increased approximately 50% year-over-year, representing nearly 20% of unit sales, while battery electric vehicle sales rose over 25% [36] - New vehicle inventory at year-end was below 43,000 units, down from 46,000 units at the end of Q3 2024 [38] - After-sales gross profit increased by more than 5% year-over-year, achieving record gross profit for both Q4 and the full year [24][51] Company Strategy and Development Direction - The company plans to continue focusing on after-sales growth, technician recruitment, and retention, as well as enhancing customer financial services [65] - Capital allocation will prioritize high-return opportunities, including share repurchases and potential M&A activities [145][150] - The company divested eight stores that did not fit its model, allowing for capital redeployment into share repurchases [17][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about pent-up demand for new vehicles and anticipated moderate unit growth in early 2025, with expectations for stabilization in unit profitability [62][63] - The company expects continued resilience in customer financial services volumes and profitability, alongside a stable used car market [64] - Management acknowledged uncertainties in the economic environment and geopolitical factors but emphasized the company's ability to deliver strong results across various conditions [61][66] Other Important Information - The company repurchased approximately $100 million of shares during Q4 2024, bringing total share repurchases for the year to $460 million, representing a 7% reduction in shares outstanding [26][59] - AutoNation was recognized by Fortune magazine as one of the world's most admired companies for the eighth consecutive year [18] Q&A Session Summary Question: Impact of post-election consumer sentiment on sales - Management noted improved consumer sentiment post-election and expected this trend to continue into early 2025, with a strong exit rate in new vehicle sales [72][75] Question: OEMs' approach to EV inventory - Management indicated that OEMs are adjusting their strategies regarding EVs and hybrids, balancing inventory levels while recognizing the growing demand for hybrids [78][81] Question: Funding needs for AutoNation Finance - Management discussed the expected increase in nonrecourse financing for AutoNation Finance, projecting a growth in funding levels as the portfolio matures [94][97] Question: After-sales growth expectations - Management highlighted the focus on technician recruitment and the potential for mid-single-digit growth in after-sales, emphasizing the importance of customer retention [100][106] Question: SG&A improvements and future expectations - Management indicated that SG&A as a percentage of gross profit improved in Q4 2024, with expectations for modest improvements in 2025 as the company continues to drive growth [114][118] Question: Used vehicle margin stabilization - Management acknowledged that while used vehicle margins have moderated, they expect opportunities for growth in dollar terms rather than percentage terms due to market dynamics [132][134] Question: Collision business recovery - Management anticipated a seasonal recovery in the collision business as they move into spring, despite challenges faced in the previous year [138][140] Question: Capital allocation strategy - Management reiterated that capital allocation decisions will focus on maximizing shareholder returns, balancing between share repurchases and potential acquisitions [144][150]

Group 1 - AutoNation, Inc. (NYSE: AN) has shown strong performance over the past year, with a stock price increase of 24% and recently reaching a 52-week high [1] - The stock experienced a slight decline after the company reported solid Q4 results [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories in making investment decisions [1]