AutoNation (AN) Expected to Beat Earnings Estimates: What to Know Ahead of Q1 Release

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$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$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].