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Jun 30, 2021
AutoNation Q2 2021 Earnings Report
AutoNation reported all-time record quarterly EPS driven by strong demand and operational performance.
Key Takeaways
AutoNation reported record second-quarter results, with EPS reaching an all-time high. Revenue and gross profit increased significantly year-over-year, driven by strong new and used vehicle sales. The company also repurchased a significant amount of common stock during the quarter.
Second quarter GAAP EPS from continuing operations was an all-time record $4.83, an increase of 52% compared to second quarter 2020.
Second quarter total revenue was an all-time record $7.0 billion, an increase of 54% compared to the same period a year ago.
Same-store gross profit increased 68% compared to the same period a year ago.
During the second quarter of 2021, AutoNation repurchased 7.5 million shares of common stock for an aggregate purchase price of $736 million.
AutoNation
AutoNation
AutoNation Revenue by Segment
AutoNation Revenue by Geographic Location
Revenue by Segment
New Vehicle Revenue
CapyFin.comUsed Vehicle Revenue
CapyFin.comParts & Service Revenue
CapyFin.comFinance & Insurance Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Domestic Revenue
CapyFin.comImport Revenue
CapyFin.comPremium Luxury Revenue
CapyFin.com Forward Guidance
AutoNation expects demand to continue to outpace supply for new vehicles into 2022 due to consumer preference for personal transportation and lower interest rates. The company remains on track to open four additional AutoNation USA stores in the second half of 2021 and 12 additional new stores in 2022, targeting over 130 AutoNation USA stores in operation by the end of 2026.
Positive Outlook
- Demand continues to outpace supply for new vehicles.
- Consumer preference for personal transportation remains strong.
- Interest rates are low.
- AutoNation USA San Antonio store exceeded expectations and was profitable in its first full month.
- AutoNation remains on track to open four additional AutoNation USA stores in the second half of 2021 and 12 additional new stores in 2022.
Challenges Ahead
- Supply chain disruptions and inventory availability issues may persist.
- Economic conditions, including changes in consumer demand, unemployment rates, and fuel prices, could impact results.
- Restrictions imposed by vehicle manufacturers and the ability to obtain manufacturer approval for acquisitions could pose challenges.
- The response by federal, state, and local governments and other third parties to, and the economic impacts of, the COVID-19 pandemic remains a risk.
- Natural disasters and other adverse weather events could disrupt operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income