NYSE$AN

AutoNation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

AutoNation reported Q2 2020 earnings, achieving an all-time record quarterly adjusted EPS from continuing operations.

AutoNation reported a net income from continuing operations of $280 million, or $3.18 per share, for the second quarter of 2020. This includes a non-cash unrealized gain related to their investment in Vroom of $161 million after-tax, or $1.82 per share. Adjusted EPS from continuing operations was an all-time record $1.41, an increase of 18% compared to adjusted EPS from continuing operations of $1.20 in the prior year.

  • EPS from continuing operations was $3.18 compared to $1.12 in the prior year, including a $161 million after-tax non-cash unrealized gain from Vroom investment.
  • Adjusted EPS from continuing operations reached a record $1.41, up 18% from $1.20 in the prior year.
  • Same-store Total Variable vehicle gross profit per vehicle retailed increased by $585, or 16%, compared to the previous year.
  • Adjusted SG&A as a percentage of gross profit was 68.2%, a decrease of 330 basis points compared to the prior year.

Headline financials

Total Revenue

$4.53B

Previous: $5.34B-15.2%
EPS (adj)

$1.41

Previous: $1.20+17.5%
New Vehicle Retail Unit Sales

54.5K

Previous: 70.5K-22.7%
Used Vehicle Retail Unit Sales

58.9K

Previous: 62.3K-5.5%
Revenue per New Vehicle Retailed

$41.5K

Previous: $39.3K+5.6%
Revenue per Used Vehicle Retailed

$21.4K

Previous: $21K+2.2%
Gross Profit per New Vehicle Retailed

$2.19K

Previous: $1.78K+23.3%
Gross Profit per Used Vehicle Retailed

$1.8K

Previous: $1.45K+23.7%
F&I Gross Profit per Vehicle

$2.17K

Previous: $1.92K+13.1%
Total Variable Ops Gross Profit/Vehicle

$4.16K

Previous: $3.58K+16.4%
Capital Expenditures

-$75.3M

Previous: -$123M+38.6%
Free Cash Flow

$205M

Previous: -$21.9M+1033.8%
Net Income

$280M

Previous: $101M+177.6%
Operating Income

$201M

Previous: $204M-1.0%
Gross Profit

$795M

Previous: $891M-10.8%
Cash & Equivalents

$257M

Previous: $51.1M+403.5%
Total Assets

$9.45B

Previous: $10.7B-11.7%
Stock-Based Comp

$11.2M

Previous: $4.9M+128.6%

Revenue & EPS history

AutoNation · Revenue · Quarterly

$4.53B

Q2 2020-15.2%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

AutoNation · $4.53B total across 5 segments · Q2 2020

  • New vehicle
    $2.26B-18.4%
  • Used vehicle
    $1.32B-4.0%
  • Parts and service
    $690M-23.5%
  • Finance and insurance, net
    $246M-3.4%
  • Other
    $10.9M-71.4%

Forward guidance

AutoNation announced the planned expansion of its AutoNation USA stand-alone pre-owned vehicle sales and service centers, planning to build at least 20 additional stores over the next three years.

Tailwinds

  • Expansion of AutoNation USA stand-alone pre-owned vehicle sales and service centers.
  • Planned construction of at least 20 additional stores over the next three years.
  • Leveraging the 'One Price' model and customer-centric selling processes.
  • Capitalizing on brand, scale, 'We’ll Buy Your Car' sourcing initiative.
  • Utilizing digital capabilities to capture a larger portion of the used vehicle market.

Headwinds

  • Uncertainties related to the resolution of the COVID-19 pandemic.
  • Potential supply chain disruptions.
  • Economic conditions, including changes in interest rates, fuel prices, and tariffs.
  • Risks associated with the success and financial viability of vehicle manufacturers.
  • Challenges in identifying, acquiring, and building out suitable locations in a timely manner.

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 Q2 2020

Historical avgQ2 2020

+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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