AutoNation (NYSE:AN) Releases Earnings Results, Beats Estimates By $0.17 EPS

AutoNation (NYSE:AN) announced its earnings results on Friday. The company reported $5.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.91 by $0.17, FiscalAI reports. AutoNation had a return on equity of 31.84% and a net margin of 2.38%.The company had revenue of $6.93 billion for the quarter, compared to analyst estimates of $7.21 billion. During the same period in the previous year, the firm earned $4.97 earnings per share. AutoNation’s revenue for the quarter was down 3.9% compared to the same quarter last year.

Here are the key takeaways from AutoNation’s conference call:

• AutoNation delivered a strong 2025 financial year with adjusted EPS up 16% to $20.22, adjusted net income +8%, revenue +3%, and adjusted free cash flow >$1.0B (up ~39%), enabling $785M of share repurchases that reduced shares outstanding by ~10%.
• Same-store new vehicle retail declined ~10% in Q4 (new vehicle revenue down ~9%), driven largely by a ~60% drop in BEV sales and weaker hybrid demand amid tariff/incentive pull-forwards and tough comps, though new-vehicle profitability improved sequentially to about $2,400 per unit.
• After-sales and Customer Financial Services were major positives — record Q4 after-sales gross profit (~$600M) with same-store after-sales revenue +5% and CFS unit profitability +8%, while AN Finance grew to a $2.2B portfolio and turned profitable as ABS funding and credit metrics improved.
• Used-vehicle performance was mixed: full-year used gross profit rose 5% but Q4 used retail unit sales fell 5% and Q4 used GPU declined to $1,438; inventory was ~25,700 units with expectations to increase into spring as management emphasizes internal sourcing and pricing/turn discipline.

AutoNation Stock Up 7.0%

AutoNation stock traded up $14.31 during mid-day trading on Friday, hitting $218.33. 701,257 shares of the company’s stock were exchanged, compared to its average volume of 382,990. AutoNation has a 1-year low of $148.33 and a 1-year high of $228.92. The stock has a 50 day moving average of $211.76 and a two-hundred day moving average of $210.10. The company has a current ratio of 0.79, a quick ratio of 0.20 and a debt-to-equity ratio of 1.93. The stock has a market cap of $7.96 billion, a P/E ratio of 12.84 and a beta of 0.88.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada lifted its holdings in AutoNation by 8.9% in the 1st quarter. Royal Bank of Canada now owns 18,953 shares of the company’s stock worth $3,070,000 after purchasing an additional 1,551 shares during the last quarter. United Services Automobile Association bought a new position in shares of AutoNation in the first quarter valued at approximately $265,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of AutoNation by 10.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 98,610 shares of the company’s stock worth $15,967,000 after buying an additional 9,656 shares during the last quarter. Focus Partners Wealth boosted its holdings in shares of AutoNation by 17.3% during the 1st quarter. Focus Partners Wealth now owns 3,472 shares of the company’s stock worth $562,000 after buying an additional 511 shares during the period. Finally, Geneos Wealth Management Inc. grew its stake in AutoNation by 37.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 235 shares of the company’s stock valued at $38,000 after buying an additional 64 shares during the last quarter. 94.62% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms have issued reports on AN. Citigroup boosted their price objective on AutoNation from $265.00 to $280.00 and gave the stock a “buy” rating in a report on Thursday, October 30th. Wells Fargo & Company boosted their price target on shares of AutoNation from $220.00 to $222.00 and gave the company an “equal weight” rating in a report on Monday, January 12th. Weiss Ratings restated a “buy (b)” rating on shares of AutoNation in a research report on Monday, December 29th. Evercore ISI lifted their price objective on shares of AutoNation from $240.00 to $300.00 and gave the stock an “outperform” rating in a research report on Monday, November 24th. Finally, Morgan Stanley increased their target price on AutoNation from $225.00 to $233.00 and gave the company an “overweight” rating in a report on Monday, December 8th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $243.67.

Key Stories Impacting AutoNation

Here are the key news stories impacting AutoNation this week:

• Positive Sentiment: Q4 EPS beat — AutoNation reported adjusted EPS $5.08, topping consensus and prior-year EPS, which supports stronger profitability expectations. Read More.
• Positive Sentiment: After-sales strength — Service, parts and other after-sales revenue hit record highs, helping margins and offsetting some vehicle-sales weakness. That recurring revenue stream likely underpins investor confidence. Read More.
• Positive Sentiment: Analyst stance and momentum — Analysts maintain a constructive view (consensus “Moderate Buy”) and some screens rank AN as a momentum stock, supporting demand for shares after the beat. Read More.
• Neutral Sentiment: Buyback discussion — Coverage highlights buybacks as a lever to support EPS and shareholder returns, but balance-sheet leverage and execution will determine impact. Read More.
• Neutral Sentiment: Company materials available — The press release, slide deck and conference call are posted for investors to hear management’s outlook and guidance color. Read More.
• Negative Sentiment: Revenue shortfall and retail softness — Q4 revenue $6.93B missed estimates (~$7.2B) and reflected weaker comparable sales in both new and used vehicles, a direct headwind to top-line growth. Read More.
• Negative Sentiment: Temporary pull-forward effects — Management and coverage point to sales being impacted by earlier pull-forward from tariffs and expiration of an EV tax credit, suggesting some near-term softness in retail demand. Read More.

AutoNation declared that its board has authorized a share repurchase plan on Friday, October 31st that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 13.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s management believes its shares are undervalued.

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.