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

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

AutoNation stock traded down $1.43 during midday trading on Friday, reaching $213.22. 1,338,675 shares of the stock traded hands, compared to its average volume of 424,942. The stock has a market cap of $7.13 billion, a P/E ratio of 11.55, a PEG ratio of 0.97 and a beta of 0.75. The stock’s fifty day moving average is $195.17 and its 200-day moving average is $198.38. 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 12 month low of $176.62 and a 12 month high of $235.81.

More AutoNation News

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

Insider Transactions at AutoNation

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Sivia Capital Partners LLC purchased a new position in shares of AutoNation in the 2nd quarter worth $232,000. Orion Porfolio Solutions LLC bought a new stake in shares of AutoNation in the 2nd quarter worth about $210,000. Jump Financial LLC purchased a new stake in shares of AutoNation during the 4th quarter valued at about $210,000. Fieldview Capital Management LLC purchased a new stake in shares of AutoNation during the 4th quarter valued at about $206,000. Finally, EP Wealth Advisors LLC bought a new position in shares of AutoNation in the 4th quarter valued at about $201,000. 94.62% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts recently commented on AN shares. Morgan Stanley reissued an “overweight” rating and issued a $240.00 price target on shares of AutoNation in a report on Thursday, May 7th. Weiss Ratings raised shares of AutoNation from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, May 6th. Citigroup lifted their price objective on shares of AutoNation from $269.00 to $287.00 and gave the company a “buy” rating in a research report on Thursday, May 14th. Wells Fargo & Company lowered their target price on shares of AutoNation from $208.00 to $202.00 and set an “equal weight” rating on the stock in a report on Monday, July 6th. Finally, Northcoast Research upgraded shares of AutoNation from a “neutral” rating to a “buy” rating and set a $240.00 target price for the company in a research report on Tuesday, July 14th. Ten equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $246.18.

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.