AutoNation (NYSE:AN) Releases Earnings Results, Beats Expectations By $0.08 EPS

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

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%

NYSE:AN traded down $1.43 during trading hours on Friday, reaching $213.22. 1,338,675 shares of the company traded hands, compared to its average volume of 424,942. The company has a current ratio of 0.81, a quick ratio of 0.20 and a debt-to-equity ratio of 2.62. The business’s 50-day moving average price is $195.17 and its two-hundred day moving average price is $198.38. AutoNation has a 1 year low of $176.62 and a 1 year high of $235.81. The stock has a market capitalization of $7.13 billion, a P/E ratio of 11.55, a P/E/G ratio of 0.97 and a beta of 0.75.

Insider Activity at AutoNation

In other news, CAO Kimberly Dees sold 2,500 shares of the firm’s stock in a transaction 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 directly owned 1,456 shares in the company, valued at $298,348.96. This trade represents a 63.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 1.40% of the company’s stock.

Hedge Funds Weigh In On AutoNation

A number of hedge funds have recently bought and sold shares of the company. Virtu Financial LLC bought a new stake in AutoNation during the 4th quarter valued at about $245,000. Corient Private Wealth LLC lifted its stake in shares of AutoNation by 444.2% in the fourth quarter. Corient Private Wealth LLC now owns 119,163 shares of the company’s stock worth $24,605,000 after buying an additional 97,268 shares in the last quarter. Vident Advisory LLC lifted its stake in shares of AutoNation by 9.2% in the fourth quarter. Vident Advisory LLC now owns 2,428 shares of the company’s stock worth $501,000 after buying an additional 205 shares in the last quarter. EP Wealth Advisors LLC bought a new position in shares of AutoNation in the fourth quarter worth approximately $201,000. Finally, XTX Topco Ltd purchased a new stake in shares of AutoNation during the fourth quarter valued at approximately $2,912,000. Institutional investors own 94.62% of the company’s stock.

AutoNation News Summary

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

Analyst Ratings Changes

AN has been the subject of several research analyst reports. Weiss Ratings upgraded AutoNation from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, May 6th. Wells Fargo & Company decreased their price objective on shares of AutoNation from $208.00 to $202.00 and set an “equal weight” rating for the company in a report on Monday, July 6th. UBS Group began coverage on shares of AutoNation in a research report on Wednesday, May 27th. They issued a “buy” rating and a $234.00 target price for the company. Morgan Stanley reaffirmed an “overweight” rating and set a $240.00 target price on shares of AutoNation in a research note on Thursday, May 7th. Finally, Barclays boosted their price target on shares of AutoNation from $255.00 to $260.00 and gave the company an “overweight” rating in a research report on Wednesday, July 15th. Ten analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $246.18.

AutoNation Company Profile

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.