AutoNation (NYSE:AN) Posts Earnings Results

AutoNation (NYSE:AN) released its earnings results on Friday. The company reported $5.08 EPS for the quarter, beating the consensus estimate of $4.91 by $0.17, FiscalAI reports. The company had revenue of $6.93 billion during the quarter, compared to analysts’ expectations of $7.21 billion. AutoNation had a return on equity of 31.84% and a net margin of 2.38%.The business’s revenue was down 3.9% on a year-over-year basis. During the same period in the prior year, the business posted $4.97 EPS.

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 Performance

NYSE AN traded up $13.40 during trading hours on Friday, hitting $217.42. The company had a trading volume of 631,071 shares, compared to its average volume of 379,810. AutoNation has a fifty-two week low of $148.33 and a fifty-two week high of $228.92. The firm has a market cap of $7.93 billion, a P/E ratio of 12.79 and a beta of 0.88. The company has a quick ratio of 0.20, a current ratio of 0.79 and a debt-to-equity ratio of 1.93. The business has a fifty day simple moving average of $211.76 and a 200-day simple moving average of $210.10.

AutoNation announced that its Board of Directors has authorized a stock buyback program on Friday, October 31st that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 13.7% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Institutional Trading of AutoNation

Hedge funds have recently bought and sold shares of the company. Geneos Wealth Management Inc. grew its position in AutoNation by 37.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 235 shares of the company’s stock worth $38,000 after purchasing an additional 64 shares during the last quarter. Employees Retirement System of Texas acquired a new position in shares of AutoNation during the third quarter worth approximately $48,000. CIBC Private Wealth Group LLC grew its holdings in AutoNation by 13.3% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 519 shares of the company’s stock worth $114,000 after buying an additional 61 shares in the last quarter. Advisory Services Network LLC bought a new stake in AutoNation during the 3rd quarter valued at $115,000. Finally, Orion Porfolio Solutions LLC bought a new stake in AutoNation during the 2nd quarter valued at $210,000. 94.62% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings restated a “buy (b)” rating on shares of AutoNation in a research note on Monday, December 29th. Morgan Stanley upped their price objective on AutoNation from $225.00 to $233.00 and gave the company an “overweight” rating in a research note on Monday, December 8th. JPMorgan Chase & Co. raised AutoNation from a “neutral” rating to an “overweight” rating and set a $235.00 target price on the stock in a report on Friday, January 16th. Evercore ISI boosted their price target on AutoNation from $240.00 to $300.00 and gave the company an “outperform” rating in a report on Monday, November 24th. Finally, Wells Fargo & Company upped their price target on AutoNation from $220.00 to $222.00 and gave the company an “equal weight” rating in a research report on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $243.67.

AutoNation News Summary

Here are the key news stories impacting AutoNation this week:

• Positive Sentiment: Q4 EPS beat expectations — AutoNation reported adjusted EPS of $5.08, topping consensus estimates (around $4.91) which supports profitability resilience. AutoNation (AN) Q4 Earnings Top Estimates
• Positive Sentiment: After-sales (service & parts) hit record highs, helping margins and offsetting softer new/used vehicle volumes — a structural strength investors favor given recurring revenue. Car Sales Slow, But AutoNation’s After-Sales Machine Hits Record Highs
• Neutral Sentiment: Analyst sentiment remains constructive — the consensus recommendation noted is a “Moderate Buy,” which can support investor confidence but isn’t a strong upgrade catalyst. AutoNation, Inc. (NYSE:AN) Receives Consensus Recommendation of “Moderate Buy” from Analysts
• Neutral Sentiment: Company materials (press release, slide deck, conference call) are available for detail — useful for investors looking for guidance, margin drivers, and buyback details. Listen to Conference Call
• Negative Sentiment: Revenue missed and declined year-over-year — Q4 sales were $6.93B versus analyst estimates near $7.21B and fell about 3.9% YoY, signaling softer new/used vehicle demand. AutoNation Revenue Declines on Weaker New, Used Vehicle Sales
• Negative Sentiment: Management cited a pull-forward effect from tariffs and the expiration of the EV tax credit as reasons for weaker sales — this timing issue could pressure near-term volume and revenue comparisons. AutoNation sees sales fall due to pull-forward effect from tariffs and EV tax credit expiration

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.