AutoNation Q3 revenue slightly beats on customer pay growth

Overview

• U.S. auto retailer's Q3 revenue was flat yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q3 grew yr/yr and beat analyst expectations

• Company approved additional $1 bln for share repurchases

Outlook

• Company did not provide specific financial guidance for the current qtr or full yr

• Company says current environment favors capital allocation to share repurchases

Result Drivers

• AFTER-SALES PERFORMANCE - Co said record after-sales gross profit and 6% customer pay growth contributed to results

• FINANCE GROWTH - Co reported AutoNation Finance portfolio grew over 40% YoY and profit increased tenfold

• CASH GENERATION - Co attributed strong cash flow generation to recurring earnings from after-sales and finance

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

• Wall Street's median 12-month price target for AutoNation, Inc. is $217.50, about 28.4% above its October 29 closing price of $169.34

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Oct 28 - Group 1 Automotive Q3 revenue falls 6.7%, misses estimates

• Oct 28 - Penske Q3 revenue tops estimates on used vehicle demand

• Oct 29 - Sonic Automotive Q3 revenue hits record but slightly misses estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)