AutoNation (NYSE:AN) Posts Earnings Results

Key Points

• AutoNation’s adjusted EPS rose 2% year over year to $5.56, beating estimates of $5.48 and marking its sixth consecutive quarter of annual EPS growth. Net income increased 111% to $182.1 million.
• Revenue declined 0.6% to $6.93 billion, missing the roughly $7 billion consensus, as new-vehicle sales fell 4%, new-vehicle gross profit per unit declined, and battery-electric vehicle sales dropped more than 30%.
• Higher-margin operations remained strong: after-sales posted record gross profit of $607 million, while AutoNation Finance profit rose to $11 million. Management also highlighted $439 million in year-to-date free cash flow, $457 million in share repurchases, and expectations for adjusted EPS growth in the second half.

AutoNation (NYSE:AN - Get Free Report) released its quarterly earnings results on Friday. The company reported $5.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.48 by $0.08, FiscalAI reports. AutoNation had a return on equity of 31.45% and a net margin of 2.47%.The business had revenue of $6.93 billion during the quarter, compared to the consensus estimate of $7 billion. During the same period in the previous year, the company posted $2.26 EPS. The business's quarterly revenue was down .6% compared to the same quarter last year.

Here are the key takeaways from AutoNation's conference call:

• Adjusted EPS rose 2% year over year to $5.56, marking AutoNation’s sixth consecutive quarter of year-over-year EPS growth. Results benefited from disciplined operations, share repurchases that reduced shares outstanding by approximately 12%, and stable vehicle profitability.
• After-sales delivered record gross profit of $607 million. Customer-pay revenue increased 7% year over year, customer-pay repair orders rose 5%, wholesale parts revenue grew 16%, and management expects continued mid-single-digit customer-pay growth.
• AutoNation Finance continued to scale profitably, generating $11 million of quarterly profit, up from $2 million a year ago. Its portfolio grew 52% to $2.67 billion, with 91% debt funding and stable delinquencies and reserve rates.
• Cash generation and capital returns remained strong. Adjusted free cash flow increased 11% year to date to $439 million, while the company deployed $317 million on acquisitions and $457 million on share repurchases; management said residual cash flow will continue to support buybacks after CapEx and selective M&A.
• New-vehicle unit sales declined 4% and new-vehicle gross profit per unit fell to $2,381 from $2,785 a year ago, partly due to a more than 30% drop in battery-electric vehicle sales, higher vehicle costs, and the lapping of tariff- and EV-credit-related pull-forward activity. Used retail volume also declined, although used GPU remained relatively stable at $1,582.

AutoNation Stock Performance

Shares of AN stock traded down $1.43 during trading hours on Friday, reaching $213.22. 1,338,675 shares of the company traded hands, compared to its average volume of 424,942. The firm has a 50-day moving average price of $195.17 and a 200 day moving average price of $198.38. The company has a market cap of $7.13 billion, a P/E ratio of 11.55, a P/E/G ratio of 0.97 and a beta of 0.75. The company has a debt-to-equity ratio of 2.62, a current ratio of 0.81 and a quick ratio of 0.20. AutoNation has a 12-month low of $176.62 and a 12-month high of $235.81.

Insider Transactions at AutoNation

In other AutoNation news, CAO Kimberly Dees sold 2,500 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $204.91, for a total transaction of $512,275.00. Following the sale, the chief accounting officer owned 1,456 shares in the company, valued at approximately $298,348.96. This trade represents a 63.20% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On AutoNation

Large investors have recently added to or reduced their stakes in the company. Geneos Wealth Management Inc. increased its stake in shares of AutoNation by 37.4% in the first quarter. Geneos Wealth Management Inc. now owns 235 shares of the company's stock worth $38,000 after purchasing an additional 64 shares in the last quarter. Employees Retirement System of Texas purchased a new position in shares of AutoNation during the 3rd quarter valued at $48,000. Smartleaf Asset Management LLC lifted its stake in shares of AutoNation by 49.7% during the 4th quarter. Smartleaf Asset Management LLC now owns 259 shares of the company's stock valued at $54,000 after buying an additional 86 shares in the last quarter. Aster Capital Management DIFC Ltd bought a new position in AutoNation in the 4th quarter worth $84,000. Finally, CIBC Private Wealth Group LLC boosted its holdings in AutoNation by 13.3% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 519 shares of the company's stock worth $114,000 after buying an additional 61 shares during the period. Hedge funds and other institutional investors own 94.62% of the company's stock.

Trending Headlines about AutoNation

Here are the key news stories impacting AutoNation this week:

• Positive Sentiment: Adjusted second-quarter EPS rose to $5.56, exceeding the roughly $5.43–$5.48 analyst consensus. Net income increased 111% year over year to $182.1 million, helped by improved profitability. Revenue Miss, EV Sales Slump Send AutoNation Stock Lower
• Positive Sentiment: After-sales produced a record gross profit, customer-pay revenue grew 7%, and Customer Financial Services gross profit per unit increased 3%, demonstrating resilience in AutoNation’s higher-margin operations. The company also repurchased $457 million of stock during the first half and acquired four dealerships representing approximately $600 million in annual revenue. AutoNation Reports Second Quarter 2026 Results
• Positive Sentiment: Management expects adjusted EPS growth in the second half and is targeting SG&A at 66% to 67% of gross profit by year-end, signaling a focus on operating leverage and expense discipline. AutoNation outlines SG&A target and second-half EPS growth
• Neutral Sentiment: AutoNation’s luxury-vehicle strategy is accelerating. While this could improve margins and mix over time, it also increases investor attention on demand trends in a more cyclical and potentially softer market. AutoNation beats on profit but misses revenue as luxury pivot accelerates
• Negative Sentiment: Revenue declined approximately 1% year over year to $6.93 billion, below the roughly $7 billion consensus. Lower new-vehicle sales and a slump in electric-vehicle sales reinforced concerns about softer dealership demand and ongoing macroeconomic pressure. AutoNation Revenue Falls on Lower New-Vehicle Sales

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on AN shares. Citigroup raised their price objective on shares of AutoNation from $269.00 to $287.00 and gave the stock a "buy" rating in a report on Thursday, May 14th. Weiss Ratings raised shares of AutoNation from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, May 6th. Wells Fargo & Company decreased their price target on shares of AutoNation from $208.00 to $202.00 and set an "equal weight" rating on the stock in a research report on Monday, July 6th. Morgan Stanley reiterated an "overweight" rating and set a $240.00 price target on shares of AutoNation in a research note on Thursday, May 7th. Finally, Barclays boosted their price objective on shares of AutoNation from $255.00 to $260.00 and gave the company an "overweight" rating in a research report on Wednesday, July 15th. Ten equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $246.18.

AutoNation Company Profile

AutoNation, Inc is the largest automotive retailer in the United States, operating a network of franchised new vehicle dealerships, pre-owned vehicle superstores and collision-repair centers. The company offers a comprehensive range of automotive products and services, including the sale of new cars and light trucks from leading manufacturers, certified pre-owned vehicles and a wide selection of used models. In addition to retail vehicle sales, AutoNation provides financing, insurance and extended service contracts through its in-house financial services division, as well as genuine and aftermarket parts, factory-recommended maintenance and collision-repair services.

Headquartered in Fort Lauderdale, Florida, AutoNation was founded in 1996 by entrepreneur H.

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