The 10-second takeaway
For the quarter ended Sep. 30 (Q3), AutoNation met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins grew, net margins grew.
AutoNation reported revenue of $3.93 billion. The 11 analysts polled by S&P Capital IQ foresaw revenue of $3.96 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $3.51 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.66. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.66 per share. GAAP EPS of $0.66 for Q3 were 38% higher than the prior-year quarter's $0.48 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 15.8%, 60 basis points worse than the prior-year quarter. Operating margin was 4.2%, 10 basis points better than the prior-year quarter. Net margin was 2.1%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.87 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $15.35 billion. The average EPS estimate is $2.48.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 168 members out of 232 rating the stock outperform, and 64 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give AutoNation a green thumbs-up, and 14 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 $37.89.
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