AutoNation Q3 revenue slightly beats on customer pay growth
AN•AutoNation reported third-quarter revenue of $7.01 billion, slightly above the $6.97 billion consensus, and adjusted EPS of $5.11, above the $5.08 estimate. The company approved an additional $1 billion for share repurchases.
1. Quarterly results
AutoNation said third-quarter revenue was flat year over year at $7.01 billion, slightly ahead of analyst expectations. Adjusted EPS rose year over year to $5.11, beating the $5.08 consensus; reported EPS was $4.87.
2. Growth drivers
The company cited record after-sales gross profit and 6% customer pay growth. Its AutoNation Finance portfolio grew more than 40% year over year, while profit increased tenfold.
3. Capital allocation
AutoNation approved an additional $1 billion for share repurchases and said the current environment favors allocating capital to buybacks. It did not provide specific financial guidance for the current quarter or full year.
