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Mar 31, 2023

AutoNation Q1 2023 Earnings Report

AutoNation's Q1 2023 performance reflected a blend of revenue decrease and earnings increase, driven by strategic business management and capital allocation.

Key Takeaways

AutoNation reported a decrease in revenue by 5% year-over-year, totaling $6.4 billion for Q1 2023, but achieved a record EPS of $6.07, a 5% increase compared to the previous year. The company effectively managed its used vehicle business and saw double-digit growth in after-sales gross profit.

Achieved record first-quarter EPS of $6.07, a 5% increase year-over-year.

Reported first-quarter revenue of $6.4 billion, a 5% decrease year-over-year.

After-Sales gross profit reached a record $511 million, up 11% compared to the prior year.

Used Vehicle gross profit hit a record $154 million, a 13% increase year-over-year.

Total Revenue
$6.4B
Previous year: $6.75B
-5.2%
EPS
$6.05
Previous year: $5.78
+4.7%
New Vehicle Unit Sales
55.07K
Previous year: 56.44K
-2.4%
Used Vehicle Unit Sales
67.54K
Previous year: 79.76K
-15.3%
Revenue per New Vehicle
$53.2K
Previous year: $49.7K
+7.1%
Gross Profit
$1.29B
Previous year: $1.31B
-1.7%
Cash and Equivalents
$58.3M
Previous year: $608M
-90.4%
Free Cash Flow
$415M
Previous year: $587M
-29.3%
Total Assets
$10.4B
Previous year: $9.36B
+10.7%

AutoNation

AutoNation

AutoNation Revenue by Segment

Forward Guidance

AutoNation is focused on expanding its brand and service offerings to cover more of the consumer transportation lifecycle, aiming for long-term profitability and shareholder value through strategic growth and expense management.

Positive Outlook

  • Strong consumer demand for personal vehicle ownership.
  • Expansion of AutoNation USA stores in Albuquerque and Austin.
  • Continued investment in operational and expansion activities.
  • Disciplined capital allocation through share repurchases.
  • Focus on providing a comprehensive, convenient, and transparent customer experience.

Challenges Ahead

  • Unspecified risks associated with strategic acquisitions and initiatives.
  • Potential challenges in identifying and building out suitable locations.
  • Possible difficulties in maintaining retail brands and attracting consumers to digital channels.
  • Dependence on vehicle manufacturers' success and marketing programs.
  • Potential impacts from economic conditions such as unemployment and inflation.

Revenue & Expenses

Visualization of income flow from segment revenue to net income