FORT LAUDERDALE, Fla. - AutoNation, Inc. (NYSE: NYSE:AN) today announced its first quarter 2024 financial results, reporting an earnings per share (EPS) of $4.49, surpassing the analyst estimate of $4.23.
The automotive retailer's revenue met expectations at $6.49 billion, consistent with the consensus estimate and marking a slight increase from $6.4 billion in the same quarter last year. The stock experienced a modest increase of +0.37% following the earnings release, indicating a positive but restrained investor response to the earnings beat.
AutoNation's After-Sales gross profit saw a significant rise of 9% YoY, reaching a record $556 million. Despite the EPS decline from $6.07 a year ago, the company's robust performance in new vehicle sales, which grew 7% in unit volume, and an 8% growth in After-Sales revenue contributed to the overall positive results. CEO Mike Manley attributed the strong quarter to the company's business model and execution, highlighting the growth in sales and the strategic capital allocation, including the repurchase of 1.6 million shares of common stock year-to-date through April 24, 2024.
The company's gross profit totaled $1.2 billion, a decrease from $1.3 billion a year ago, with a notable decline in new vehicle gross profit due to lower profit per vehicle retailed, despite a 7% increase in unit sales. Used Vehicle gross profit also decreased, reflecting a lower gross profit per vehicle retailed, though unit sales increased by 2%.
Segment-wise, Domestic Segment Income fell by 37%, Import Segment Income by 20%, and Premium Luxury Segment Income by 24%, with respective revenues showing mixed results. AutoNation's liquidity remained strong with $1.7 billion, including cash and availability under its revolving credit facility.
Manley expressed confidence in the company's direction, stating, "We remain focused on maximizing shareholder returns," and announced the Board's authorization for an additional $1.0 billion common stock repurchase.
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