AutoNation (AN) Tops Q1 Earnings and Revenue Estimates

Group 1: Earnings Performance - AutoNation reported quarterly earnings of $4.68 per share, exceeding the Zacks Consensus Estimate of$ 4.35 per share, and showing an increase from $4.49 per share a year ago, representing an earnings surprise of 7.59% [1] - The company posted revenues of$ 6.69 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.75%, compared to $6.49 billion in the same quarter last year [2] - Over the last four quarters, AutoNation has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - AutoNation shares have increased by approximately 2.1% since the beginning of the year, while the S&P 500 has declined by 6.8% [3] - The current consensus EPS estimate for the upcoming quarter is$ 4.47 on revenues of $6.72 billion, and for the current fiscal year, it is$ 18.22 on revenues of $27.02 billion [7] - The estimate revisions trend for AutoNation is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Automotive - Retail and Whole Sales industry is currently in the top 21% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]