Brian Sponheimer, a portfolio manager and analyst at Gabelli Funds, appears on 'The Exchange' to talk about how tariffs might increase used car sales, how the market will handle these stocks, and other related topics.
AutoNation, a major car retailer in the U.S., has opened new AutoNation USA stores in Denton and Houston. These locations are the seventh and eighth pre-owned vehicle stores in Texas, adding to the company's total of 26 stores across the country. The announcement was made on March 3, 2025.
AutoNation (AN) reported quarterly earnings of $4.97 per share, which is higher than the Zacks Consensus Estimate of $4.26 per share. This is a slight decrease compared to earnings of $5.02 per share from the same period last year.
In the fourth quarter of 2024, AutoNation, Inc. reported a revenue of $7.2 billion, which is an 8% increase from the same period last year when looking at the same stores. The company also saw a 12% growth in new vehicle sales and a 14% rise in gross profit from used vehicles. Additionally, they originated $1.1 billion in loans and reduced their shares by 7% through repurchases.
AutoNation, Inc. shares have increased by 24% in the last year and recently reached a 52-week high, even though there was a small decline after strong Q4 results. In Q4, the adjusted earnings per share were $4.97, which was $0.71 higher than expected, with revenue rising by 7% to $7.2 billion and gross profit increasing by 2% to $1.24 billion. While new and used vehicle sales contribute to revenue, the majority of AutoNation's cash flow comes from parts, service, and financing, which are still growing.
AutoNation, Inc. has been honored once more for its excellence and reliability by being included in Fortune's 2025 Most Admired Companies list. This recognition highlights the company's success in a competitive market and its commitment to making a positive difference beyond just its business activities.
Since I recommended AutoNation Inc. as a Strong Buy on November 21, 2023, its shares have provided a total return of 27%. Although the company faced difficulties in 2024, it is expected to grow again in 2025. The stock is still considered a good value compared to the overall market and its competitors.
On November 18, 2024, ASH, ARW, and AN were included in the Zacks Rank #5 (Strong Sell) List.
Phil LeBeau from CNBC covers Black Friday for car dealerships.
AutoNation Mobile Services is now available at your home, making it easy to take care of your car before traveling. In Fort Lauderdale, Florida, on November 25, 2024, it was announced that this Thanksgiving is expected to be one of the busiest ever.