NYSE$AN

AutoNation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

AutoNation reported all-time record results driven by strong gross profit growth and expense control.

AutoNation reported record third-quarter earnings with adjusted EPS of $2.38, a 102% increase year-over-year. The company's focus on digital capabilities and expense control contributed to significant SG&A leverage.

  • EPS from continuing operations was $2.05, compared to $1.11 in the prior year.
  • Adjusted EPS from continuing operations was an all-time record $2.38, up 102% compared to the prior year.
  • Same-store Total Variable gross profit per vehicle retailed was up $966, a 28% increase year-over-year.
  • Adjusted SG&A as a percentage of gross profit improved by 800 basis points compared to the prior year, reaching 64.4%.

Headline financials

Total Revenue

$5.4B

Previous: $5.46B-1.0%
EPS (adj)

$2.38

Previous: $1.18+101.7%
Revenue per New Vehicle Retailed

$41.6K

Previous: $38.7K+7.5%
Revenue per Used Vehicle Retailed

$22K

Previous: $20.9K+5.5%
Gross Profit per New Vehicle Retailed

$2.53K

Previous: $1.6K+58.0%
Gross Profit per Used Vehicle Retailed

$1.99K

Previous: $1.38K+44.7%
F&I Gross Profit per Vehicle

$2.15K

Previous: $1.93K+11.4%
Total Variable Ops Gross Profit/Vehicle

$4.42K

Previous: $3.43K+28.8%
Capital Expenditures

-$113M

Previous: -$186M+39.3%
Free Cash Flow

$69.5M

Previous: -$86.8M+180.1%
Net Income

$183M

Previous: $99.5M+83.5%
Operating Income

$272M

Previous: $194M+40.4%
Gross Profit

$972M

Previous: $887M+9.5%
Cash & Equivalents

$351M

Previous: $45M+678.9%
Total Assets

$9.57B

Previous: $10.5B-8.4%
Stock-Based Comp

$7.2M

Previous: $9.5M-24.2%

Revenue & EPS history

AutoNation · Revenue · Quarterly

$5.4B

Q3 2020-1%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

AutoNation · $5.4B total across 5 segments · Q3 2020

  • New vehicle
    $2.75B-4.4%
  • Used vehicle
    $1.52B+8.1%
  • Parts and service
    $853M-5.5%
  • Finance and insurance, net
    $281M+5.6%
  • Other
    $5.6M-61.9%

Forward guidance

AutoNation plans to build over 100 AutoNation USA pre-owned vehicle stores, with over 50 completed by the end of 2025. The company plans to open five new AutoNation USA stores by the end of 2021 and has set the long-term goal of retailing over 1 million combined new and used vehicle units per year.

Tailwinds

  • Expanding AutoNation USA pre-owned vehicle stores to over 100 locations.
  • Completing over 50 AutoNation USA stores by the end of 2025.
  • Extending AutoNation’s coast-to-coast footprint into new markets.
  • Opening five new AutoNation USA stores by the end of 2021.
  • Aiming to retail over 1 million combined new and used vehicle units per year.

Headwinds

  • Response by federal, state, and local governments and other third parties to, and the economic impacts of, the COVID-19 pandemic
  • Supply chain disruptions
  • Changes in consumer demand, unemployment rates, interest rates, fuel prices, and tariffs
  • New and used vehicle margins
  • Ability to successfully implement and maintain expense controls

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 Q3 2020

Historical avgQ3 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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