NYSE$AN

AutoNation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

AutoNation reported record third quarter EPS despite industry headwinds.

AutoNation reported a 4% increase in revenue to $6.7 billion and a GAAP EPS of $6.31 for the third quarter of 2022. The results were driven by higher average selling prices of vehicles and continued growth in After-Sales and Customer Financial Services, which offset lower unit sales of new and used vehicles.

  • Third quarter GAAP EPS was a third-quarter record $6.31, an increase of 23% year-over-year.
  • Third quarter revenue was $6.7 billion, an increase of 4% compared to the same period a year ago.
  • Third quarter operating income was $523 million, an increase of 4% as compared to the same period a year ago.
  • After-Sales gross profit was $479 million, an increase of 13% compared to the same period a year ago.

Headline financials

Total Revenue

$6.67B

Previous: $6.38B+4.5%
EPS (adj)

$6.00

Previous: $5.12+17.2%
New Vehicle Retail Unit Sales

55.6K

Previous: 58.3K-4.7%
Used Vehicle Retail Unit Sales

75.4K

Previous: 77.6K-2.8%
Gross Profit per New Vehicle Retailed

$5.93K

Previous: $5.48K+8.2%
Gross Profit per Used Vehicle Retailed

$1.87K

Previous: $2.1K-11.1%
F&I Gross Profit per Vehicle

$2.76K

Previous: $2.57K+7.2%
Capital Expenditures

-$236M

Previous: -$161M-46.4%
Free Cash Flow

$116M

Previous: $200M-41.9%
Net Income

$353M

Previous: $362M-2.5%
Operating Income

$523M

Previous: $503M+3.8%
Gross Profit

$1.31B

Previous: $1.27B+3.2%
Cash & Equivalents

$443M

Previous: $72M+515.1%
Total Assets

$9.42B

Previous: $8.14B+15.7%
Stock-Based Comp

$5.1M

Previous: $4.3M+18.6%

Revenue & EPS history

AutoNation · Revenue · Quarterly

$6.67B

Q3 2022+4.5%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

AutoNation · $6.67B total across 5 segments · Q3 2022

  • New vehicle
    $2.86B+4.0%
  • Used vehicle
    $2.4B+3.4%
  • Parts and service
    $1.03B+9.4%
  • Finance and insurance, net
    $361M+3.4%
  • Other
    $7.6M-23.2%

Forward guidance

AutoNation announced it has signed an agreement to acquire Brandon Dodge on Broadway, Colorado Springs Dodge, Pikes Peak Acura and City Auto Plaza from Moreland Auto Group with approximately $320 million in annual revenue. This transaction is subject to customary terms and conditions, including manufacturer approval, and is expected to close in the fourth quarter of 2022.

Tailwinds

  • CIG Financial acquisition completion extends AutoNation’s relationship with its Customers throughout the vehicle ownership life cycle.
  • Opened twelfth AutoNation USA store in Kennesaw, Georgia.
  • Long-term strategic goal remains to own and operate over 130 AutoNation USA stores from coast to coast.
  • Repurchased 3.8 million shares of common stock, or 7% of shares outstanding, for an aggregate purchase price of $428 million.
  • Board of Directors authorized the repurchase of up to an additional $1 billion of AutoNation common stock, bringing the total available authorization to $1.4 billion.

Headwinds

  • Inventory in the industry remains constrained.
  • Retail sales of new and used vehicles remain well below historical levels.
  • Pace of new store openings has been inhibited due in part to the challenging construction market.
  • Domestic segment income decreased by 4%.
  • Import segment income decreased by 10%.

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 2022

Historical avgQ3 2022

+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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