AutoNation beats Q4 estimates, shares rise on strong performance

Published 11/02/2025, 13:14
AutoNation beats Q4 estimates, shares rise on strong performance

FORT LAUDERDALE - AutoNation (NYSE:AN), Inc on Tuesday reported fourth quarter 2024 results that surpassed analyst expectations, driving shares up 3.77% in pre-market trading in response to the earnings beat and robust performance across key segments.

The automotive retailer posted adjusted earnings per share of $4.97, significantly exceeding the analyst consensus of $4.24. Revenue for the quarter reached $7.21 billion, surpassing estimates of $6.67 billion and marking an 8% increase YoY on a same-store basis.

New vehicle same-store unit sales grew 12% in Q4, while used vehicle same-store gross profit increased by 14%. The company’s After-Sales and Customer Financial Services segments also showed strength, with same-store gross profit growth of 5% and 6%, respectively.

"Our fourth quarter performance reflects the strength of AutoNation’s business model and operations," said Mike Manley, AutoNation’s Chief Executive Officer. "We achieved double-digit new vehicle unit growth, gaining share in the markets we serve, while also meaningfully increasing used vehicle, Customer Financial Services, and After-Sales gross profit."

The company continued its share repurchase program, buying back 0.6 million shares for $104 million in Q4. For the full year 2024, AutoNation repurchased 2.9 million shares, representing a 7% reduction in shares outstanding, for a total of $460 million.

AutoNation’s finance arm originated $1.1 billion in loans during 2024, expanding its business while enhancing its loan portfolio. The company ended the quarter with $1.3 billion in liquidity and a covenant leverage ratio of 2.4X, demonstrating a strong balance sheet position.

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