AutoNation Q1 Earnings & Revenues Beat Estimates, Increase Y/Y

Core Insights - AutoNation, Inc. reported first-quarter 2025 adjusted earnings of $4.68 per share, a 4$4.35, driven by strong revenues and profits from retail new and used vehicles [1] - Total revenues for the quarter reached $6.69 billion, exceeding the Zacks Consensus Estimate of$6.57 billion and up from $6.48 billion in the first quarter of 2024 [1] Revenue Breakdown - New vehicle revenues increased by 9$3.24 billion, exceeding the estimate of $2.83 billion, with retail units sold totaling 62,387, a 6$52,064, surpassing the estimate of $47,541 [2] - Gross profit from new vehicles was$175 million, a decline of 10.7% year over year, but above the estimate of $112.5 million [2] Used Vehicle Performance - Retail used-vehicle revenues decreased by 2.3$1.79 billion, but exceeded the projection of $1.77 billion due to higher ASP [3] - Used vehicle retail units sold were 68,000, down 1.6$26,354, down 0.7% year over year, but above the estimate of $25,562 [3] - Gross profit from used vehicles increased by 11$113 million, surpassing the estimate of $86.3 million [3] Wholesale and Other Segments - Revenues from wholesale used vehicles fell by 19.7$130.3 million, missing the estimate of $165.7 million, while gross profit rose to$11.5 million from $9.7 million, exceeding the estimate of$6.2 million [4] - Finance and insurance business net revenues were $352.5 million, a 5.3$332.2 million [4] - Parts and service revenues contracted by 0.7% to $1.16 billion, missing the estimate of$1.3 billion, while gross profit rose by 2.1% to $567.7 million, below the estimate of$618 million [5] Segmental Performance - Domestic segment revenues declined by 2.2% year over year to $1.71 billion, exceeding the projection of$1.7 billion, with segment income down 8.2% to $69 million, but above the estimate of$60 million [5] - Import segment revenues increased by 3.4% to $2 billion, surpassing the forecast of$1.95 billion, with income contracting by 2% to $126 million, exceeding the estimate of$113 million [6] - Premium Luxury segment sales rose by 6.7% to $2.57 billion, surpassing the projection of$2.44 billion, with segment income increasing by 4.1% to $178.7 million, exceeding the estimate of$160 million [6] Financial Position - As of March 31, 2025, the company's liquidity stood at $1.6 billion, including$71 million in cash and nearly $1 billion available under its revolving credit facility [7] - Inventory was valued at$3.23 billion, and non-vehicle debt was $3.96 billion [7] - Capital expenditure for the quarter was$75.2 million [7] Share Repurchase Activity - During the first quarter of 2025, AutoNation repurchased 1.4 million shares for $225 million, with a total of 1.5 million shares repurchased for$254 million since the beginning of the year [8] - The company currently has $607 million remaining under its share repurchase program [8]