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Sep 30, 2020
AutoNation Q3 2020 Earnings Report
AutoNation reported all-time record results driven by strong gross profit growth and expense control.
Key Takeaways
AutoNation reported record third-quarter earnings with adjusted EPS of $2.38, a 102% increase year-over-year. The company's focus on digital capabilities and expense control contributed to significant SG&A leverage.
EPS from continuing operations was $2.05, compared to $1.11 in the prior year.
Adjusted EPS from continuing operations was an all-time record $2.38, up 102% compared to the prior year.
Same-store Total Variable gross profit per vehicle retailed was up $966, a 28% increase year-over-year.
Adjusted SG&A as a percentage of gross profit improved by 800 basis points compared to the prior year, reaching 64.4%.
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.com Forward Guidance
AutoNation plans to build over 100 AutoNation USA pre-owned vehicle stores, with over 50 completed by the end of 2025. The company plans to open five new AutoNation USA stores by the end of 2021 and has set the long-term goal of retailing over 1 million combined new and used vehicle units per year.
Positive Outlook
- Expanding AutoNation USA pre-owned vehicle stores to over 100 locations.
- Completing over 50 AutoNation USA stores by the end of 2025.
- Extending AutoNation’s coast-to-coast footprint into new markets.
- Opening five new AutoNation USA stores by the end of 2021.
- Aiming to retail over 1 million combined new and used vehicle units per year.
Challenges Ahead
- Response by federal, state, and local governments and other third parties to, and the economic impacts of, the COVID-19 pandemic
- Supply chain disruptions
- Changes in consumer demand, unemployment rates, interest rates, fuel prices, and tariffs
- New and used vehicle margins
- Ability to successfully implement and maintain expense controls
Revenue & Expenses
Visualization of income flow from segment revenue to net income