The 10-second takeaway
For the quarter ended June 30 (Q2), AutoNation beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased.
Gross margins dropped, operating margins dropped, net margins were steady.
AutoNation logged revenue of $4.43 billion. The 11 analysts polled by S&P Capital IQ expected a top line of $4.34 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $3.90 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 $0.73. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.73 per share. GAAP EPS of $0.73 for Q2 were 14% higher than the prior-year quarter's $0.64 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 15.7%, 40 basis points worse than the prior-year quarter. Operating margin was 4.1%, 20 basis points worse than the prior-year quarter. Net margin was 2.0%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.37 billion. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $17.33 billion. The average EPS estimate is $2.95.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 175 members out of 239 rating the stock outperform, and 64 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 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 $46.00.
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