AutoNation Q2 Result Smashes Estimates; Announces $1B Share Buyback

Automotive retailer AutoNation Inc (NYSE:AN) reported second-quarter FY21 sales growth of 54% year-on-year to $6.98 billion, beating the analyst consensus of $6.02 billion.
Same-store new vehicle retail unit sales increased 42% Y/Y while used vehicle retail unit sales rose 37% Y/Y.
Domestic segment income rose 106% Y/Y, import segment sales grew 131% Y/Y, and premium luxury segment sales rose 153% Y/Y.
Gross profit improved 68% Y/Y to $1.3 billion, and the gross profit margin gained 150 basis points Y/Y to 19%.
Selling, general and administrative (SG&A) expenses were 56.5% of gross profit.
The operating margin for the quarter was 7.6%, and operating income was $530.2 million.
The adjusted net income from continuing operations was $384.9 million in the quarter.
EPS from continuing operations of $4.83 beat the analyst consensus of $2.58.
Cash and equivalents totaled $59.5 million as of June 30, 2021.
AutoNation announced that its Board of Directors had authorized the repurchase of up to an additional $1 billion of stock.
Looking ahead into 2022, it expects demand to outpace supply for new vehicles due to consumers’ preference for personal transportation coupled with lower interest rates.
Price action: AN shares are trading higher by 0.15% at $102.75 in premarket on the last check Monday.