AutoNation (NYSE:AN) Releases Earnings Results

AutoNation (NYSE:AN) posted its quarterly earnings results on Friday. The company reported $5.56 earnings per share for the quarter, topping the consensus estimate of $5.48 by $0.08, FiscalAI reports. AutoNation had a return on equity of 31.45% and a net margin of 2.47%.The firm had revenue of $6.93 billion during the quarter, compared to analysts’ expectations of $7 billion. During the same quarter in the previous year, the business earned $2.26 earnings per share. The company’s revenue was down .6% on a year-over-year basis.

Here are the key takeaways from AutoNation’s conference call:

• Adjusted EPS rose 2% year over year to $5.56, marking AutoNation’s sixth consecutive quarter of year-over-year EPS growth. Results benefited from disciplined operations, share repurchases that reduced shares outstanding by approximately 12%, and stable vehicle profitability.
• After-sales delivered record gross profit of $607 million. Customer-pay revenue increased 7% year over year, customer-pay repair orders rose 5%, wholesale parts revenue grew 16%, and management expects continued mid-single-digit customer-pay growth.
• AutoNation Finance continued to scale profitably, generating $11 million of quarterly profit, up from $2 million a year ago. Its portfolio grew 52% to $2.67 billion, with 91% debt funding and stable delinquencies and reserve rates.
• Cash generation and capital returns remained strong. Adjusted free cash flow increased 11% year to date to $439 million, while the company deployed $317 million on acquisitions and $457 million on share repurchases; management said residual cash flow will continue to support buybacks after CapEx and selective M&A.
• New-vehicle unit sales declined 4% and new-vehicle gross profit per unit fell to $2,381 from $2,785 a year ago, partly due to a more than 30% drop in battery-electric vehicle sales, higher vehicle costs, and the lapping of tariff- and EV-credit-related pull-forward activity. Used retail volume also declined, although used GPU remained relatively stable at $1,582.

AutoNation Stock Down 0.7%

AN opened at $213.22 on Friday. The company has a market capitalization of $7.13 billion, a PE ratio of 9.88, a price-to-earnings-growth ratio of 0.90 and a beta of 0.75. The firm has a 50-day simple moving average of $195.64 and a two-hundred day simple moving average of $198.49. The company has a quick ratio of 0.20, a current ratio of 0.81 and a debt-to-equity ratio of 2.62. AutoNation has a 52 week low of $176.62 and a 52 week high of $235.81.

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. Citigroup lifted their target price on shares of AutoNation from $269.00 to $287.00 and gave the stock a “buy” rating in a research report on Thursday, May 14th. Northcoast Research raised shares of AutoNation from a “neutral” rating to a “buy” rating and set a $240.00 price objective on the stock in a report on Tuesday, July 14th. UBS Group initiated coverage on shares of AutoNation in a report on Wednesday, May 27th. They set a “buy” rating and a $234.00 target price for the company. Weiss Ratings upgraded AutoNation from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, May 6th. Finally, Barclays boosted their price target on AutoNation from $255.00 to $260.00 and gave the company an “overweight” rating in a report on Wednesday, July 15th. Ten investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $246.18.

Insider Activity at AutoNation

In other AutoNation news, CAO Kimberly Dees sold 2,500 shares of the firm’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $204.91, for a total transaction of $512,275.00. Following the completion of the transaction, the chief accounting officer owned 1,456 shares in the company, valued at $298,348.96. This trade represents a 63.20% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 1.40% of the company’s stock.

Institutional Investors Weigh In On AutoNation

Several large investors have recently bought and sold shares of AN. Dimensional Fund Advisors LP grew its stake in shares of AutoNation by 2.1% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,422,350 shares of the company’s stock worth $293,697,000 after buying an additional 29,697 shares in the last quarter. Invesco Ltd. increased its stake in AutoNation by 11.2% during the third quarter. Invesco Ltd. now owns 907,163 shares of the company’s stock worth $198,460,000 after acquiring an additional 91,232 shares during the last quarter. State Street Corp lifted its stake in shares of AutoNation by 0.6% in the 4th quarter. State Street Corp now owns 895,040 shares of the company’s stock valued at $184,808,000 after purchasing an additional 5,489 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of AutoNation by 10.5% in the 3rd quarter. AQR Capital Management LLC now owns 697,927 shares of the company’s stock worth $151,967,000 after purchasing an additional 66,183 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its position in shares of AutoNation by 5.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 352,890 shares of the company’s stock valued at $72,865,000 after purchasing an additional 18,915 shares during the last quarter. Institutional investors own 94.62% of the company’s stock.

Key Stories Impacting AutoNation

Here are the key news stories impacting AutoNation this week:

• Positive Sentiment: Adjusted second-quarter EPS rose to $5.56, exceeding the roughly $5.43–$5.48 analyst consensus. Net income increased 111% year over year to $182.1 million, helped by improved profitability. Revenue Miss, EV Sales Slump Send AutoNation Stock Lower
• Positive Sentiment: After-sales produced a record gross profit, customer-pay revenue grew 7%, and Customer Financial Services gross profit per unit increased 3%, demonstrating resilience in AutoNation’s higher-margin operations. The company also repurchased $457 million of stock during the first half and acquired four dealerships representing approximately $600 million in annual revenue. AutoNation Reports Second Quarter 2026 Results
• Positive Sentiment: Management expects adjusted EPS growth in the second half and is targeting SG&A at 66% to 67% of gross profit by year-end, signaling a focus on operating leverage and expense discipline. AutoNation outlines SG&A target and second-half EPS growth
• Neutral Sentiment: AutoNation’s luxury-vehicle strategy is accelerating. While this could improve margins and mix over time, it also increases investor attention on demand trends in a more cyclical and potentially softer market. AutoNation beats on profit but misses revenue as luxury pivot accelerates
• Negative Sentiment: Revenue declined approximately 1% year over year to $6.93 billion, below the roughly $7 billion consensus. Lower new-vehicle sales and a slump in electric-vehicle sales reinforced concerns about softer dealership demand and ongoing macroeconomic pressure. AutoNation Revenue Falls on Lower New-Vehicle Sales

About AutoNation

AutoNation, Inc is the largest automotive retailer in the United States, operating a network of franchised new vehicle dealerships, pre-owned vehicle superstores and collision-repair centers. The company offers a comprehensive range of automotive products and services, including the sale of new cars and light trucks from leading manufacturers, certified pre-owned vehicles and a wide selection of used models. In addition to retail vehicle sales, AutoNation provides financing, insurance and extended service contracts through its in-house financial services division, as well as genuine and aftermarket parts, factory-recommended maintenance and collision-repair services.

Headquartered in Fort Lauderdale, Florida, AutoNation was founded in 1996 by entrepreneur H.