The 10-second takeaway
For the quarter ended March 31 (Q1), AutoNation beat slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Margins shrank across the board.
AutoNation reported revenue of $3.66 billion. The 11 analysts polled by S&P Capital IQ expected revenue of $3.60 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $3.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.56. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.53 per share on the same basis. GAAP EPS of $0.55 for Q1 were 22% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.5%, 60 basis points worse than the prior-year quarter. Operating margin was 4.1%, 10 basis points worse than the prior-year quarter. Net margin was 2.0%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.69 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $14.95 billion. The average EPS estimate is $2.27.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 157 members out of 224 rating the stock outperform, and 67 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give AutoNation a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AutoNation is hold, with an average price target of $34.70.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.