Automotive retail giant AutoNation (NYSE: AN) will be reporting earnings this Friday before market hours. Here’s what you need to know.
AutoNation missed analysts’ revenue expectations last quarter, reporting revenues of $6.93 billion, down 3.9% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ revenue estimates.
Is AutoNation a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting AutoNation’s revenue to be flat year on year, slowing from the 3.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AutoNation has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at AutoNation’s peers in the vehicle retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CarMax posted flat year-on-year revenue, beating analysts’ expectations by 3.9%, and Lithia reported revenues up 1%, topping estimates by 1%. CarMax traded down 17.5% following the results.
Read our full analysis of CarMax’s results here and Lithia’s results here.
There has been positive sentiment among investors in the vehicle retailer segment, with share prices up 2.6% on average over the last month. AutoNation is up 5% during the same time and is heading into earnings with an average analyst price target of $236.64 (compared to the current share price of $205.04).
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