Earnings Preview For AutoNation

AutoNation AN is set to give its latest quarterly earnings report on Friday, 2025-04-25. Here's what investors need to know before the announcement.

Analysts estimate that AutoNation will report an earnings per share (EPS) of $4.25.

Investors in AutoNation are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Past Earnings Performance

The company's EPS beat by $0.71 in the last quarter, leading to a 1.81% drop in the share price on the following 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 $168.9 as of April 23. Over the last 52-week period, shares are up 0.77%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on AutoNation

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

Analysts have provided AutoNation with 8 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $194.75, suggesting a potential 15.3% upside.

Comparing Ratings Among Industry Peers

The analysis below examines the analyst ratings and average 1-year price targets of Lithia Motors, Group 1 Automotive and Valvoline, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Lithia Motors, with an average 1-year price target of $373.44, suggesting a potential 121.1% upside.
• Analysts currently favor an Buy trajectory for Group 1 Automotive, with an average 1-year price target of $455.8, suggesting a potential 169.86% upside.
• Analysts currently favor an Buy trajectory for Valvoline, with an average 1-year price target of $42.0, suggesting a potential 75.13% downside.

Peers Comparative Analysis Summary

The peer analysis summary outlines pivotal metrics for Lithia Motors, Group 1 Automotive and Valvoline, demonstrating their respective standings within the industry and offering 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.

Get to Know AutoNation Better

AutoNation is the second-largest automotive dealer in the United States, with 2024 revenue of about $27 billion and over 240 dealerships, plus 52 collision centers. The firm also has 26 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors across 20 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) divested 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 Insights: AutoNation

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Over the 3 months period, AutoNation showcased positive performance, achieving a revenue growth rate of 6.59% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.58%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): AutoNation's ROE excels beyond industry benchmarks, reaching 7.71%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): AutoNation's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.44%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 3.52, AutoNation adopts a prudent financial strategy, indicating a balanced approach to debt management.

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.