NYSE$AN

AutoNation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

AutoNation reported record fourth quarter and full year results, with revenue up 2% and adjusted EPS up 11% compared to the same period a year ago.

AutoNation reported record fourth quarter revenue of $6.7 billion, a 2% increase compared to the same period a year ago. GAAP EPS was $5.72, and adjusted EPS was $6.37, a fourth quarter record. The company reduced shares outstanding by 25% as it repurchased 15.6 million shares, including 4.6 million during the fourth quarter.

  • GAAP EPS was $5.72, and adjusted EPS was $6.37, a fourth quarter record.
  • Revenue was $6.7 billion, a fourth quarter record, and increased 2% compared to the same period a year ago.
  • After-Sales growth continued with gross profit up 12% to a record.
  • The Company reduced shares outstanding by 25% as it repurchased 15.6 million shares, including 4.6 million during the fourth quarter.

Headline financials

Total Revenue

$6.7B

Previous: $6.58B+1.7%
EPS (adj)

$6.37

Previous: $5.76+10.6%
New Vehicle Retail Unit Sales

60.1K

Previous: 57.6K+4.3%
Used Vehicle Retail Unit Sales

67.6K

Previous: 74.4K-9.2%
Gross Profit per New Vehicle Retailed

$5.63K

Previous: $6.45K-12.7%
Gross Profit per Used Vehicle Retailed

$1.85K

Previous: $2.06K-10.5%
F&I Gross Profit per Vehicle

$2.7K

Previous: $2.68K+0.9%
Capital Expenditures

$92.8M

Previous: $54.4M+70.6%
Free Cash Flow

$132M

Previous: $14.1M+836.2%
Net Income

$286M

Previous: $387M-26.0%
Operating Income

$425M

Previous: $532M-20.2%
Gross Profit

$1.28B

Previous: $1.32B-3.0%
Cash & Equivalents

$72.6M

Previous: $60.4M+20.2%
Total Assets

$10.1B

Previous: $1.85B+444.4%
Stock-Based Comp

$5.2M

Previous: $3.4M+52.9%

Revenue & EPS history

AutoNation · Revenue · Quarterly

$6.7B

Q4 2022+1.7%vs Q4 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

AutoNation · $6.69B total across 4 segments · Q4 2022

  • New vehicle
    $3.15B+7.9%
  • Used vehicle
    $2.17B-7.5%
  • Parts and service
    $1.03B+7.0%
  • Finance and insurance, net
    $345M-2.4%

Forward guidance

AutoNation is focused on expanding its product and service offerings, aligning its core business to serve Customers and Manufacturer partners, and disciplined capital allocation to position AutoNation for long-term sustained profitability.

Tailwinds

  • Operational excellence, including Customer satisfaction, sales efficiency, sales effectiveness, and asset utilization.
  • Extended and enhanced brand, scale, and footprint during the year, opening four additional AutoNation USA stores and adding nine franchises acquired from the Moreland Auto Group.
  • Improved digital retailing experience with an enhanced digital storefront.
  • Expanded service and product offerings to introduce comprehensive transportation solutions to over 11 million AutoNation Customers.
  • Continued to utilize its substantial cash flow generation to deploy capital to return funds to shareholders through share repurchases.

Headwinds

  • Economic conditions, including changes in unemployment, interest, and/or inflation rates, consumer demand, fuel prices, and tariffs.
  • Supply chain disruptions and inventory availability.
  • New and used vehicle margins.
  • Ability to successfully implement and maintain expense controls.
  • The success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises.

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 Q4 2022

Historical avgQ4 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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