AN Earnings Prediction
The chart below shows how AN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AN sees a -1.69% change in stock price 10 days leading up to the earnings, and a -1.34% change 10 days following the report. On the earnings day itself, the stock moves by +0.28%. This data can give you a slight idea of what to expect for the next quarter's release.
AN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
7.21B
6.59%
9.52%
Gross Margin
16.36%
-4.38%
-3.93%
Operating Margin
5.00%
-3.29%
-8.09%
Net Margin
2.58%
-19.12%
-8.51%
EPS
4.62
-8.51%
0.22%
No Data Available
AN Earnings Analysis
AutoNation Inc Corporation (AN.N) Earnings Conference Call
Positive
Same-Store Volume Growth: Delivery of 12% same-store new unit volume growth, indicating strong demand and future profit potential from after-sales and financial services.
Same-Store Gross Profit Growth: Achieved year-over-year 5% same-store gross profit growth with a gross margin improvement of 110 basis points, driven by external customer channels and increased repair orders.
Finance Originations Surge: AutoNation Finance grew originations by three times over 2023, building a portfolio exceeding $1.1 billion, with year-end delinquencies below 3%.
Share Repurchase Program: Repurchased approximately $100 million of shares in Q4, totaling $460 million for the year, representing a 7% reduction in shares outstanding.
Record After-Sales Gross Profit: Same-store gross profit for after-sales increased by more than 5% year-over-year, achieving record gross profit for both the fourth quarter and the full year.
Negative
Profitability Decline Despite Revenue Growth: Adjusted net income decreased to $199 million, down from $216 million a year ago, indicating a decline in profitability despite increased revenues.
Increased Interest Expense: Fourth-quarter floor plan interest expense rose to $55 million, up $9 million from the previous year, reflecting higher financing costs associated with recovering inventory levels.
Unit Sales Performance Analysis: Used unit sales were flat year-over-year and down 2% sequentially, underperforming the market which saw an 11% decline, highlighting ongoing supply challenges.
Quarterly Adjusted EPS Decline: Adjusted EPS for the quarter was $4.97, five cents below the fourth quarter of 2023, reflecting pressure on earnings despite share repurchases reducing the share count.
Free Cash Flow Decline: Free cash flow for 2024 was $750 million, a significant decrease from $969 million in the previous year, indicating a decline in cash generation capabilities.
AN FAQs
How does AN typically perform around its earnings report dates?
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AN Earning Call Sentiment
AutoNation, Inc. (NYSE:AN) Q4 2024 Earnings Call Transcript
AN.N
2.76%Positive
The earnings call presents a positive outlook with strong financial performance, including a 7% revenue increase and significant share repurchases, indicating confidence in the company’s value. Concerns about interest rate fluctuations and regulatory risks are mitigated by improved credit quality and strategic focus on M&A. Despite a slight decline in gross profit margin, the optimistic sales outlook and strategic capital allocation, alongside improved AutoNation Finance originations, contribute to a positive sentiment. The Q&A section did not reveal significant negative trends, supporting a positive stock price prediction.
