Auto Nation Q1 Earnings Tops Estimates

  • AutoNation Inc  AN reported first-quarter FY22 sales growth of 14% year-on-year to $6.75 billion, beating the consensus of $6.48 billion.
  • The company attributed the Q1 sales growth to a 47% increase in used vehicle revenue.
  • Segment income from Domestic rose 26% Y/Y, Import grew 48%, and Premium Luxury rose 45%.
  • Gross profit improved 27% Y/Y to $1.3 billion, and the gross profit margin expanded 190 basis points Y/Y to 19.4%. After-Sales gross profit increased 19% to $461 million.
  • Selling, general and administrative (SG&A) expenses increased by 14.4%.
  • The operating margin for the quarter was 7.7%, and operating income was $519 million, a 54% Y/Y increase.
  • Adjusted EPS of $5.78 beat the consensus of $5.25.
  • Cash and equivalents totaled $608.1 million as of March 31, 2022.
  • AutoNation has approximately $376 million remaining authorization for share repurchase as of April 19, 2022.
  • Price Action: AN shares are trading lower by 4.13% at $101.25 on the last check Thursday.
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