Used Car Dealer AutoNation Tops Q3 Earnings, Records First Y/Y Total Unit Sales Growth In Eight Quarters
Portfolio Pulse from Lekha Gupta
AutoNation Inc reported Q3 FY23 sales growth of 3% Y/Y to $6.89 billion, beating the analyst consensus of $6.71 billion. New vehicle retail unit sales increased 12% Y/Y, while used vehicle retail unit sales declined 4% Y/Y. Gross profit declined 1% Y/Y to $1.295 billion. Adjusted net income declined 27% Y/Y to $243.7 million. AutoNation repurchased 1.3 million shares of common stock for $200 million in Q3. AN shares are trading lower by 0.21% at $130.15.
October 27, 2023 | 2:07 pm
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AutoNation reported Q3 FY23 sales growth, beating analyst consensus, but saw a decline in gross profit and adjusted net income. The company also repurchased shares in Q3.
Despite beating sales estimates, AutoNation's decline in gross profit and adjusted net income could negatively impact investor sentiment, leading to a potential decrease in the short-term stock price. The company's share repurchase could indicate a belief in the company's undervaluation, but it may not be enough to offset the negative impact of the profit decline.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100