NYSE$AN

AutoNation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

AutoNation reported a record first quarter with significant increases in revenue, EPS, and gross profit, driven by strong same-store sales growth and strategic capital allocation.

AutoNation reported a strong first quarter in 2021, with record adjusted EPS of $2.79, a 207% increase year-over-year. The company saw significant growth in same-store revenue and gross profit, both up by 27%. AutoNation also announced an agreement to acquire 11 stores and 1 collision center from Peacock Automotive Group, expected to add approximately $380 million in annual revenue.

  • GAAP EPS from continuing operations was $2.85, compared to a loss per share of $2.58 in Q1 2020.
  • Adjusted EPS from continuing operations reached a record $2.79, a 207% increase year-over-year.
  • Same-store revenue and gross profit both increased by 27% compared to the same period last year.
  • AutoNation is set to acquire 11 stores and 1 collision center from Peacock Automotive Group, anticipated to bring in $380 million in annual revenue.

Headline financials

Total Revenue

$5.9B

Previous: $4.67B+26.5%
EPS (adj)

$2.79

Previous: $0.91+206.6%
New Vehicle Retail Unit Sales

69.4K

Previous: 56.7K+22.2%
Used Vehicle Retail Unit Sales

71.8K

Previous: 56.1K+27.8%
Gross Profit per New Vehicle Retailed

$2.74K

Previous: $1.7K+61.2%
Gross Profit per Used Vehicle Retailed

$1.74K

Previous: $1.49K+17.3%
F&I Gross Profit per Vehicle

$2.22K

Previous: $2.09K+6.2%
Capital Expenditures

-$41.3M

Previous: -$42.2M+2.1%
Free Cash Flow

$198M

Previous: -$275M+172.2%
Net Income

$239M

Previous: -$232M+203.1%
Operating Income

$337M

Previous: -$219M+253.6%
Gross Profit

$1.03B

Previous: $813M+27.0%
Cash & Equivalents

$350M

Previous: $411M-14.8%
Total Assets

$9.27B

Previous: $10.6B-12.2%
Stock-Based Comp

$20.8M

Previous: $4.5M+362.2%

Revenue & EPS history

AutoNation · Revenue · Quarterly

$5.9B

Q1 2021+26.5%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

AutoNation · $5.9B total across 5 segments · Q1 2021

  • New vehicle
    $2.98B+30.7%
  • Used vehicle
    $1.75B+40.1%
  • Parts and service
    $851M-2.9%
  • Finance and insurance, net
    $313M+32.7%
  • Other
    $8.4M-65.4%

Forward guidance

AutoNation is targeting to have over 130 AutoNation USA stores in operation from coast-to-coast by the end of 2026 and targets selling 1 million combined new and pre-owned vehicles annually.

Tailwinds

  • Targeting over 130 AutoNation USA stores by the end of 2026.
  • Targeting 1 million combined new and pre-owned vehicles sold annually.
  • Opening a new AutoNation USA store in San Antonio, TX by the end of Q2 2021.
  • Acquisition of 11 stores and 1 collision center from Peacock Automotive Group is expected to close in the Summer.
  • Remaining Board authorization for share repurchase is approximately $892 million.

Headwinds

  • Economic conditions, including changes in consumer demand.
  • Supply chain disruptions and inventory availability.
  • Restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for acquisitions.
  • Natural disasters and other adverse weather events.
  • Regulatory factors affecting our business, including fuel economy requirements.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.4%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.9%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+16.1%

Q2 2019

Best reaction

-15.1%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-3.6%-11.7%
Q4 2025+6.2%+1.9%-5.5%
Q3 2025-3.6%-8.9%-4.4%
Q1 2025+1.0%+0.5%+5.1%
Q4 2024+1.3%+0.0%-18.7%
Q3 2024-3.2%-2.5%+5.7%
Q2 2024+2.5%-7.4%-0.8%
Q1 2024+3.1%+1.5%+5.8%
Q4 2023-6.3%-7.2%+0.9%
Q3 2023-0.9%+1.9%+3.6%
Q2 2023-15.1%-11.8%-10.7%
Q1 2023-2.2%-5.3%-2.3%
Q4 2022+1.5%+1.8%-10.4%
Q3 2022+3.6%+9.1%+17.4%
Q2 2022-4.2%-9.1%+2.8%
Q1 2022+0.7%+10.0%+2.6%
Q4 2021-1.2%-5.2%+6.6%
Q3 2021+11.6%+7.2%+0.8%
Q2 2021+11.3%+13.8%+10.8%
Q1 2021-2.1%+4.6%+1.0%
Q4 2020+0.8%+0.4%+15.1%
Q3 2020-1.2%-3.2%-4.1%
Q2 2020+12.0%+11.7%+18.9%
Q1 2020-4.0%-6.8%+6.3%
Q4 2019+9.1%+8.6%-24.9%
Q3 2019-0.4%-0.1%+0.4%
Q2 2019+16.1%+16.6%+13.3%
Q1 2019+7.0%+3.8%+0.5%
Q4 2018-6.8%-9.5%-12.5%
Q3 2018-4.0%-3.5%-11.9%
Q2 2018-4.5%-1.5%-6.6%
Q1 2018+2.1%+2.7%-1.1%
Q4 2017-5.0%-9.6%-17.5%
Q3 2017+12.8%+11.2%+15.6%
Q2 2017-7.7%-3.9%+8.5%
Q1 2017-2.1%-4.7%-11.7%
Q4 2016-6.4%-8.0%-11.5%
Q3 2016-4.7%-8.9%-2.7%
Q2 2016-0.6%-5.5%-8.7%
Q1 2016+3.1%
Q4 2015-1.8%
Q3 2015+2.3%
Q2 2015-3.6%
Q1 2015+0.1%
Q4 2014+5.8%
Q3 2014+7.3%
Q2 2014-5.6%
Q1 2014+1.6%
Q4 2013+5.1%
Q3 2013+1.2%
Q2 2013-1.6%
Q1 2013+3.2%
Q4 2012+6.3%
Q3 2012-7.1%
Q2 2012-6.5%
Q1 2012+3.9%
Q4 2011-2.7%
Q3 2011+7.5%
Q2 2011+8.3%
Q1 2010-3.3%
Q1 2011-0.3%
Q4 2010+3.7%
Q4 2008+3.7%
Q3 2010-6.4%
Q3 2009-6.4%
Q2 2010-1.7%
Q2 2009-1.7%
Q4 2009-1.7%

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