AutoNation, Inc. (NYSE:AN) is scheduled to report Q3 earnings results on October 21, 2020.
The company is expected to report earnings of $1.65/share on revenue of $5.2 billion. The consensus earnings per share (EPS) of $1.65/share is based on a poll of 9 analysts and represents a growth in eps of 34.9% over the same quarter last year, when the company reported earnings of $1.22/share.
The revenue forecast of $5.2 billion based on a poll of 8 analysts implies a year-over-year (YoY) decline in revenue of −4.8%. Last year the company reported $5.461 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, missed 1 quarters, and met expectations 1 quarters.
What are your expectations from AutoNation, Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 12.0%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|July 23, 2020||$48.85||$54.70||12.0%||Increase|
|May 11, 2020||$38.32||$36.77||−4.0%||Decline|
|February 11, 2020||$43.73||$47.72||9.1%||Increase|
|October 29, 2019||$51.79||$51.56||−0.4%||Decline|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.01, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.01 implies a 0.1% chance of earnings manipulation.
Fundamentals And Technical Analysis
AutoNation, Inc. is currently trading at $63.30/share, up 1.7% for the day. The company is trading near its 52-week high of $63.46/share. The company’s stock price is up 15.7% since the last earnings report and up 4.7% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 63.44 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 18.09 and a forward P/E multiple of 11.13.
AutoNation, Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.76. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$63.30|
|P/E Ratio (Fwd)||11.1x|
|Total Debt / Total Capital||47.7%|
|Levered Free Cash Flow||$1.016 billion|
|EV / EBITDA||10.7x|
AutoNation, Inc. is a mid-cap stock with a market capitalization of $5.429 billion and a total enterprise value of $10.1 billion. The company operates in the Consumer Discretionary sector and the Specialty Retail industry.
AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services. The company also provides automotive finance and insurance products comprising vehicle services and other protection products, as well as arranges finance for vehicle purchases through third-party finance sources. As of December 31, 2019, it owned and operated 317 new vehicle franchises from 231 stores located primarily in metropolitan markets in the Sunbelt region. It also owned and operated 81 AutoNation-branded collision centers, 5 AutoNation USA stores, 4 automotive auction operations, and 17 parts distribution centers. The company was founded in 1991 and is headquartered in Fort Lauderdale, Florida.