Used Car Dealer AutoNation Tops Q3 Earnings, Records First Y/Y Total Unit Sales Growth In Eight Quarters

AutoNation Inc AN reported Q3 FY23 sales growth of 3% Y/Y to $6.89 billion, beating the analyst consensus of $6.71 billion.

Higher New Vehicle and After-Sales revenue offset the decrease in Used Vehicle revenue.

New vehicle retail unit sales increased 12% Y/Y, and used vehicle retail unit sales declined 4% Y/Y.

Gross profit declined 1% Y/Y to $1.295 billion, and the gross profit margin contracted to 18.8% from 19.7% a year ago. After-sales gross profit increased 14% Y/Y to $546 million.

Adjusted operating income declined 16% Y/Y to $415.8 million. Segment income from Domestic fell 25% Y/Y, Import dropped 9% Y/Y, and Premium Luxury decreased 18% Y/Y.

Adjusted net income declined 27% Y/Y to $243.7 million, and adjusted Adjusted EPS of $5.54 beat the consensus of $5.49.

Cash and equivalents totaled $64.0 million as of September 30, 2023.

AutoNation repurchased 1.3 million shares of common stock for $200 million in Q3.

As of October 25, 2023, AutoNation has around $439 million worth of shares remaining under its current Board authorization for share repurchase. 

Price Action: AN shares are trading lower by 0.21% at $130.15 on the last check Friday.