NYSE$AN

AutoNation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

AutoNation reported all-time record quarterly EPS driven by strong demand and operational performance.

AutoNation reported record second-quarter results, with EPS reaching an all-time high. Revenue and gross profit increased significantly year-over-year, driven by strong new and used vehicle sales. The company also repurchased a significant amount of common stock during the quarter.

  • Second quarter GAAP EPS from continuing operations was an all-time record $4.83, an increase of 52% compared to second quarter 2020.
  • Second quarter total revenue was an all-time record $7.0 billion, an increase of 54% compared to the same period a year ago.
  • Same-store gross profit increased 68% compared to the same period a year ago.
  • During the second quarter of 2021, AutoNation repurchased 7.5 million shares of common stock for an aggregate purchase price of $736 million.

Headline financials

Total Revenue

$6.98B

Previous: $4.53B+53.9%
EPS (adj)

$4.83

Previous: $1.41+242.6%
New Vehicle Retail Unit Sales

77.2K

Previous: 54.5K+41.6%
Used Vehicle Retail Unit Sales

80.6K

Previous: 58.9K+36.8%
Revenue per New Vehicle Retailed

$44.4K

Previous: $41.5K+7.1%
Revenue per Used Vehicle Retailed

$25.9K

Previous: $21.4K+20.8%
Gross Profit per New Vehicle Retailed

$4.15K

Previous: $2.19K+89.3%
Gross Profit per Used Vehicle Retailed

$2.24K

Previous: $1.8K+24.7%
F&I Gross Profit per Vehicle

$2.34K

Previous: $2.17K+7.7%
Total Variable Ops Gross Profit/Vehicle

$5.51K

Previous: $4.16K+32.5%
Capital Expenditures

-$116M

Previous: -$75.3M-54.3%
Free Cash Flow

$269M

Previous: $205M+31.3%
Net Income

$385M

Previous: $280M+37.5%
Operating Income

$530M

Previous: $201M+163.3%
Gross Profit

$1.33B

Previous: $795M+66.8%
Cash & Equivalents

$59.5M

Previous: $257M-76.9%
Total Assets

$8.38B

Previous: $9.45B-11.3%
Stock-Based Comp

$6.5M

Previous: $11.2M-42.0%

Revenue & EPS history

AutoNation · Revenue · Quarterly

$6.98B

Q2 2021+53.9%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

AutoNation · $6.98B total across 5 segments · Q2 2021

  • New vehicle
    $3.43B+51.6%
  • Used vehicle
    $2.22B+67.8%
  • Parts and service
    $951M+37.8%
  • Finance and insurance, net
    $369M+49.8%
  • Other
    $7.4M-32.1%

Forward guidance

AutoNation expects demand to continue to outpace supply for new vehicles into 2022 due to consumer preference for personal transportation and lower interest rates. The company remains on track to open four additional AutoNation USA stores in the second half of 2021 and 12 additional new stores in 2022, targeting over 130 AutoNation USA stores in operation by the end of 2026.

Tailwinds

  • Demand continues to outpace supply for new vehicles.
  • Consumer preference for personal transportation remains strong.
  • Interest rates are low.
  • AutoNation USA San Antonio store exceeded expectations and was profitable in its first full month.
  • AutoNation remains on track to open four additional AutoNation USA stores in the second half of 2021 and 12 additional new stores in 2022.

Headwinds

  • Supply chain disruptions and inventory availability issues may persist.
  • Economic conditions, including changes in consumer demand, unemployment rates, and fuel prices, could impact results.
  • Restrictions imposed by vehicle manufacturers and the ability to obtain manufacturer approval for acquisitions could pose challenges.
  • The response by federal, state, and local governments and other third parties to, and the economic impacts of, the COVID-19 pandemic remains a risk.
  • Natural disasters and other adverse weather events could disrupt operations.

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 2021

Historical avgQ2 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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