AutoNation Shares Spike After Earnings Report Shows New Vehicle Sales Increased In Q1
Portfolio Pulse from Shivani Kumaresan
AutoNation Inc (NYSE:AN) shares surged 10.52% to $177.44 after reporting a 1% year-on-year sales growth to $6.48 billion in Q1 2024, slightly missing estimates. New vehicle sales increased by 7%, while used vehicle sales grew 2%. Despite a decline in segment income and a 7% drop in gross profit to $1.19 billion, EPS of $4.49 exceeded expectations. The company also announced a $1 billion additional stock repurchase authorization.
April 26, 2024 | 3:06 pm
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AutoNation Inc's stock rose 10.52% after Q1 2024 sales report showed a slight miss on revenue but a strong performance in new vehicle sales and EPS beating estimates. The company also announced a significant stock repurchase program.
The positive reaction in AutoNation's stock price is likely due to the combination of sales growth, especially in new vehicles, and the EPS exceeding expectations. The announcement of an additional $1 billion for stock repurchases signals confidence from management in the company's financial health and future prospects, further supporting the stock's short-term positive outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100