AutoNation Inc. (NYSE:AN) is the largest automotive retailer in the U.S. and is about twice the size of its nearest competitor. The company is positioned to benefit from recovery in the auto market, backed by its optimal brand and market mix as well as a disciplined cost structure. Rising average age of cars and trucks in the U.S., a robust consumer credit environment and an increase in new product offerings from automotive manufacturers is leading to a strong selling environment.
However, AutoNation's financial position has been deteriorating. Moreover, the used vehicles margin is under pressure due to previously held inventory.
Estimate Trend & Surprise History
Investors should note that the first-quarter earnings estimates for AutoNation have been declined over the past two months.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed in two quarters. As a result, it has an average positive surprise of around 0.61% for the last four quarters. Thus, investors are eagerly awaiting AutoNation’s latest earnings report to see how it performs this time.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings
AutoNation delivered earnings of 97 cents per share in the first quarter of 2017, which increased from 90 cents recorded in the first quarter of 2016. Earnings also beat the Zacks Consensus Estimate of 91 cents.
Revenues
AutoNation reported revenues of $5.14 billion, inching up 0.4% year over year. However, revenues missed the Zacks Consensus Estimate of $5.31 billion.
Key Stats/Developments to Note
AutoNation has completely rolled out its One Price strategy across all stores. This also led to a rise in the number of used vehicles sales volume.
Zacks Rank
Currently, AutoNation has a Zacks Rank #3 (Hold), but that could change following its earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank stocks here.
Market Reaction
AutoNation’s shares were inactive in the pre-market trading following the release.
Check back later for our full write up on AutoNation’s earnings report!
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AutoNation, Inc. (AN): Free Stock Analysis Report
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