AutoNation (NYSE:AN) Releases Earnings Results, Beats Estimates By $0.76 EPS

Key Points

• AutoNation reported earnings of $5.46 per share for the quarter, surpassing analysts' expectations of $4.70 by $0.76, with revenues of $6.97 billion also exceeding estimates.
• The company's return on equity stood at 30.08%, and it experienced a 7.6% year-over-year revenue growth compared to the same quarter last year.
• Analysts have mixed ratings on AutoNation, with a consensus rating of "Moderate Buy" and a consensus price target of $209.88 as of the latest reports.

AutoNation (NYSE:AN - Get Free Report) posted its earnings results on Friday. The company reported $5.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.70 by $0.76, Zacks reports. AutoNation had a net margin of 2.31% and a return on equity of 31.12%. The firm had revenue of $6.97 billion during the quarter, compared to the consensus estimate of $6.77 billion. During the same quarter in the prior year, the company earned $3.99 EPS. The company's revenue was up 7.6% on a year-over-year basis.

AutoNation Stock Up 0.2%

Shares of AutoNation stock traded up $0.30 during trading on Wednesday, hitting $193.53. 167,164 shares of the stock traded hands, compared to its average volume of 491,182. The stock has a market cap of $7.30 billion, a P/E ratio of 12.14, a PEG ratio of 1.00 and a beta of 0.99. The company has a debt-to-equity ratio of 1.84, a quick ratio of 0.22 and a current ratio of 0.81. AutoNation has a twelve month low of $148.33 and a twelve month high of $217.40. The company has a fifty day moving average price of $196.47 and a two-hundred day moving average price of $183.58.

Institutional Investors Weigh In On AutoNation

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of AutoNation by 10.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 98,610 shares of the company's stock valued at $15,967,000 after purchasing an additional 9,656 shares during the period. Royal Bank of Canada grew its stake in AutoNation by 8.9% in the first quarter. Royal Bank of Canada now owns 18,953 shares of the company's stock valued at $3,070,000 after purchasing an additional 1,551 shares in the last quarter. Focus Partners Wealth lifted its position in shares of AutoNation by 17.3% in the first quarter. Focus Partners Wealth now owns 3,472 shares of the company's stock valued at $562,000 after buying an additional 511 shares during the last quarter. United Services Automobile Association acquired a new stake in shares of AutoNation in the first quarter valued at approximately $265,000. Finally, Geneos Wealth Management Inc. lifted its holdings in AutoNation by 37.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 235 shares of the company's stock worth $38,000 after purchasing an additional 64 shares during the last quarter. 94.62% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Wells Fargo & Company raised their price target on shares of AutoNation from $209.00 to $221.00 and gave the stock an "equal weight" rating in a research report on Monday. Bank of America raised their price target on shares of AutoNation from $225.00 to $255.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Stephens raised their price objective on AutoNation from $190.00 to $200.00 and gave the stock an "equal weight" rating in a research note on Tuesday. Guggenheim reduced their price objective on AutoNation from $212.00 to $183.00 and set a "buy" rating on the stock in a research note on Tuesday, April 22nd. Finally, Wall Street Zen upgraded AutoNation from a "hold" rating to a "buy" rating in a research note on Saturday, May 10th. Three research analysts have rated the stock with a hold rating, five have issued a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, AutoNation currently has a consensus rating of "Moderate Buy" and an average target price of $211.38.

AutoNation Company Profile

AutoNation, Inc, through its subsidiaries, operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services.