Shares of AutoNation, Inc. AN fell 3.7% since the company reported third-quarter 2024 results. It reported adjusted earnings of $4.02 per share, which decreased 27% year over year and missed the Zacks Consensus Estimate of $4.48. 

In the third quarter, revenues amounted to $6.59 billion, which missed the Zacks Consensus Estimate of $6.73 billion and declined from $6.89 billion reported in the third quarter of 2023.

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AutoNation, Inc. Price, Consensus and EPS Surprise

AutoNation, Inc. price-consensus-eps-surprise-chart | AutoNation, Inc. Quote

Key Takeaways

In the reported quarter, new vehicle revenues were down 1% year over year to $3.2 billion but topped our estimate of $3.08 billion due to higher-than-expected sales volume and average selling price (ASP). New vehicle retail units sold totaled 62,890 units (up 2% year over year), beating our projection of 61,831 units. The ASP per new vehicle unit retailed was $50,207 (down 1.9% year over year), beating our estimate of $49,781. Gross profit from the segment came in at $176.7 million, declining 29.1% year over year but topping our estimate of $165 million.

Retail used-vehicle revenues contracted 15.1% from the year-ago quarter’s figure to $1.7 billion and missed our projection of $1.87 billion due to lower-than-expected sales volume and ASP. Used vehicle retail units sold totaled 64,071 units (down 9.8% year over year), missing our projection of 67,417 units. ASP per used vehicle unit retailed came in at $26,369 (down 5.9% year over year) and lagged our projection of $27,677. Gross profit from the segment came in at $103.8 million, which fell 16.8% but beat our projection of $103 million.

Revenues from wholesale used vehicles were up 7.4% to $151.9 million and surpassed our estimate of $146 million. Gross profit rose from $1.4 million to $6.4 million and topped our estimate of $1.7 million. 

Net revenues in the finance and insurance business amounted to $328.7 million, which decreased 9.9% from the year-ago quarter and missed our projection of $406.3 million. Gross profit was $328.7 million, which decreased 9.9% and missed our estimate of $406.3 million.

Revenues from the parts and service business rose 2.6% to $1.15 billion but missed our estimate of $1.28 billion. Gross profit from this segment came in at $550.6 million, which rose 3.3% year over year but missed our estimate of $600.7 million.

Segmental Details

Revenues from the Domestic segment declined 10.9% year over year to $1.77 billion and missed our projection of $1.82 billion. The segment’s income plunged 41.8% to $62.4 million, missing our estimate of $74.4 million.

Revenues from the Import segment fell 1.5% from the prior-year quarter to $2.04 billion and missed our forecast of $2.07 billion. The segment’s income contracted 27.6% to $119.2 million and missed our model estimate of $132.9 million.  

The Premium Luxury segment sales fell 3.6% to $2.43 billion, missing our projection of $2.56 billion. The segmental income declined 19.8% year over year to $154.7 million in the reported quarter and missed our estimate of $174.1 million.