Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

AutoNation's (AN) Q2 Earnings & Revenues Miss, Down Y/Y

AutoNation Inc. AN reported earnings of 86 cents per share in second-quarter 2017, which decreased from $1.08 in the second quarter of 2016. Earnings also missed the Zacks Consensus Estimate of 98 cents.

Net income from continuing operations declined to $88 million from $112 million in second-quarter 2016.

During the quarter, AutoNation reported revenues of $5.28 billion, declining 3% year over year. Also, revenues missed the Zacks Consensus Estimate of $5.57 billion.

New vehicle revenues decreased to $2.93 billion in second-quarter 2017. Used vehicle revenues also declined 4.6% year over year to $1.2 billion. Revenues at the parts and service business advanced 2.7% to $857.5 million in the reported quarter. The finance and insurance business also registered a 1.5% increase in revenues to $228.8 million.

Along with the earnings release, AutoNation announced the acquisition of Alpine Jaguar in Ft. Lauderdale, FL. This represents around million in annual revenue. It also marks the company’s first Jaguar franchise in South Florida market.
 
Segment Details

Revenues at the Domestic segment — comprising stores that sell vehicles manufactured by General Motors Co. GM, Ford Motor Co. F and others — declined 7.5%. The segment’s income fell 29.8% to $60.1 million in the quarter under review.

Revenues at the Import segment — comprising stores that sell vehicles manufactured primarily by Toyota Motor Corp. TM and other automakers —dipped 2.6% to $1.7 billion. However, segment income rose 0.9% to $75.3 million in the reported quarter.

Revenues at the Premium Luxury segment — consisting of stores that sell vehicles manufactured primarily by Mercedes, BMW and Lexus — remained almost flat at $1.64 billion. The segment’s income declined 9.7% to $83.9 million in the reported quarter.

Balance Sheet and Capex

AutoNation’s cash and cash equivalents were $52.5 million as of Jun 30, 2017, down from $54.7 million as of Jun 30, 2016. The company’s inventory was valued at $3.71 billion as of Jun 30, 2017 compared with $3.66 billion as of Jun 30, 2016.

Non-vehicle debt decreased to $2.57 billion from $2.71 billion as of Jun 30, 2016. Capital expenditures were $82 million in second-quarter 2017 compared with $61.7 million in the prior-year period.

Share Repurchases

In second-quarter 2017, the company repurchased 0.9 million shares for $34.9 million. As of Jul 31, 2017, AutoNation had approximately $264 million remaining under its share repurchase program and around 100 million shares outstanding.

Zacks Rank

AutoNation and General Motors currently hold a Zacks Rank #4 (Sell), while Ford and Toyota carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AutoNation, Inc. Price, Consensus and EPS Surprise

AutoNation, Inc. Price, Consensus and EPS Surprise | AutoNation, Inc. Quote

More Stock News: Tech Opportunity Worth $386 Billion in 2017

From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.

Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity.  Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>  
 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
AutoNation, Inc. (AN): Free Stock Analysis Report
 
Ford Motor Company (F): Free Stock Analysis Report
 
General Motors Company (GM): Free Stock Analysis Report
 
Toyota Motor Corp Ltd Ord (TM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research