AutoNation Inc (NYSE:AN) reported fourth-quarter sales growth of 7% year-on-year to $7.21 billion, beating the analyst consensus estimate of $6.80 billion.
New vehicle sales increased 13%, and used vehicle revenue remained relatively flat. Segment income from Domestic fell 9%, Import dropped 12%, and Premium Luxury increased 6%.
Gross profit increased 2% Y/Y to $1.24 billion, and the gross profit margin contracted 80 basis points Y/Y to 17.2%. After-sales gross profit increased 5% to $556 million.
Operating margin for the quarter compressed to 4.7% and the operating income was $339.5 million, a 2.9% decrease from the prior year.
Adjusted EPS of $4.97 beat the analyst consensus estimate of $4.26.
Adjusted operating cash flow for FY24 totaled $1.1 billion with an adjusted free cash flow of $750 million. Cash and equivalents totaled $59.8 million as of December 31, 2024.
For the full year 2024, AutoNation repurchased 2.9 million shares, or 7% of its shares outstanding at the beginning of the year, for an aggregate purchase price of $460 million, or $161 per share.
“Our fourth quarter performance reflects the strength of AutoNation’s business model and operations. We achieved double-digit new vehicle unit growth, gaining share in the markets we serve, while also meaningfully increasing used vehicle, Customer Financial Services, and After-Sales gross profit,” said CEO Mike Manley.
Price Action: AN shares are trading lower by 1.21% at $190.30 at the last check Tuesday.
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