AutoNation (NYSE:AN) Announces Quarterly Earnings Results, Beats Estimates By $0.08 EPS

AutoNation (NYSE:AN) posted its quarterly earnings results on Friday. The company reported $5.56 earnings per share (EPS) 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% compared to the same quarter last year. During the same period last year, the firm posted $2.26 EPS.

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%

AutoNation stock opened at $213.22 on Friday. The stock has a market capitalization of $7.13 billion, a PE ratio of 11.55, a price-to-earnings-growth ratio of 0.91 and a beta of 0.75. AutoNation has a 12 month low of $176.62 and a 12 month high of $235.81. The business has a 50 day simple moving average of $195.64 and a 200-day simple moving average of $198.49. The company has a debt-to-equity ratio of 2.62, a current ratio of 0.81 and a quick ratio of 0.20.

Key Headlines 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

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on AN shares. Morgan Stanley reissued an “overweight” rating and set a $240.00 target price on shares of AutoNation in a report on Thursday, May 7th. Citigroup increased their price target on AutoNation from $269.00 to $287.00 and gave the stock a “buy” rating in a research report on Thursday, May 14th. UBS Group assumed coverage on AutoNation in a research note on Wednesday, May 27th. They set a “buy” rating and a $234.00 price objective for the company. Weiss Ratings raised AutoNation from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, May 6th. Finally, Barclays upped their target price on AutoNation from $255.00 to $260.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 15th. Ten equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $246.18.

Insider Activity

In other news, CAO Kimberly Dees sold 2,500 shares of the 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 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 sale was disclosed in a filing with the SEC, which is available at the SEC website. 1.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On AutoNation

A number of large investors have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. grew its position in shares of AutoNation by 37.4% in the first quarter. Geneos Wealth Management Inc. now owns 235 shares of the company’s stock valued at $38,000 after purchasing an additional 64 shares during the period. Employees Retirement System of Texas acquired a new position in shares of AutoNation during the 3rd quarter worth about $48,000. Smartleaf Asset Management LLC lifted its stake in AutoNation by 49.7% in the 4th quarter. Smartleaf Asset Management LLC now owns 259 shares of the company’s stock valued at $54,000 after buying an additional 86 shares in the last quarter. Aster Capital Management DIFC Ltd purchased a new position in AutoNation in the 4th quarter valued at about $84,000. Finally, CIBC Private Wealth Group LLC boosted its holdings in AutoNation by 13.3% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 519 shares of the company’s stock worth $114,000 after buying an additional 61 shares during the last quarter. 94.62% of the stock is currently owned by institutional investors and hedge funds.

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.