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Sep 30, 2022
AutoNation Q3 2022 Earnings Report
AutoNation reported record third quarter EPS despite industry headwinds.
Key Takeaways
AutoNation reported a 4% increase in revenue to $6.7 billion and a GAAP EPS of $6.31 for the third quarter of 2022. The results were driven by higher average selling prices of vehicles and continued growth in After-Sales and Customer Financial Services, which offset lower unit sales of new and used vehicles.
Third quarter GAAP EPS was a third-quarter record $6.31, an increase of 23% year-over-year.
Third quarter revenue was $6.7 billion, an increase of 4% compared to the same period a year ago.
Third quarter operating income was $523 million, an increase of 4% as compared to the same period a year ago.
After-Sales gross profit was $479 million, an increase of 13% compared to the same period a year ago.
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 announced it has signed an agreement to acquire Brandon Dodge on Broadway, Colorado Springs Dodge, Pikes Peak Acura and City Auto Plaza from Moreland Auto Group with approximately $320 million in annual revenue. This transaction is subject to customary terms and conditions, including manufacturer approval, and is expected to close in the fourth quarter of 2022.
Positive Outlook
- CIG Financial acquisition completion extends AutoNation’s relationship with its Customers throughout the vehicle ownership life cycle.
- Opened twelfth AutoNation USA store in Kennesaw, Georgia.
- Long-term strategic goal remains to own and operate over 130 AutoNation USA stores from coast to coast.
- Repurchased 3.8 million shares of common stock, or 7% of shares outstanding, for an aggregate purchase price of $428 million.
- Board of Directors authorized the repurchase of up to an additional $1 billion of AutoNation common stock, bringing the total available authorization to $1.4 billion.
Challenges Ahead
- Inventory in the industry remains constrained.
- Retail sales of new and used vehicles remain well below historical levels.
- Pace of new store openings has been inhibited due in part to the challenging construction market.
- Domestic segment income decreased by 4%.
- Import segment income decreased by 10%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income