Automotive retail giant AutoNation (NYSE:AN) will be announcing earnings results this Friday before market hours. Here’s what investors should know.
AutoNation beat analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $7.04 billion, up 6.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ same-store sales estimates and a solid beat 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, analysts are expecting AutoNation’s revenue to be flat year on year at $7.19 billion, slowing from the 6.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.88 per share.
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 three times over the last two years.
Looking at AutoNation’s peers in the automotive and marine retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. OneWater delivered year-on-year revenue growth of 1.3%, meeting analysts’ expectations, and Monro reported a revenue decline of 4%, falling short of estimates by 0.6%. OneWater’s stock price was unchanged after the resultswhile Monro was down 5.2%.
Read our full analysis of OneWater’s results here and Monro’s results here.
There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 2.6% on average over the last month. AutoNation is up 1.5% during the same time and is heading into earnings with an average analyst price target of $239.30 (compared to the current share price of $214.94).
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