Autonation Inc Earnings Cheat Sheet: Margins Rise with Revenues, Net Income Rises

S&P 500 (NYSE:SPY) component Autonation Inc (NYSE:AN) reported its results for the second quarter. AutoNation, Inc. offers a range of automotive products and services, including new and used vehicles, parts and automotive repair and maintenance services as well as automotive finance and insurance products.

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

Autonation Inc Earnings Cheat Sheet for the Second Quarter

Results: Net income for the auto dealership rose to $71.9 million (48 cents per share) vs. $47.2 million (29 cents per share) in the same quarter a year earlier. This marks a rise of 52.3% from the year earlier quarter.

Revenue: Rose 7.5% to $3.34 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AN reported adjusted net income of 38 cents per share. By that measure, the company fell short of mean estimate of 47 cents per share. Analysts were expecting revenue of $3.4 billion.

Quoting Management: Mike Jackson, Chairman and Chief Executive Officer, said, “We delivered solid double-digit growth in operating income in the second quarter, which was driven by strong new and used vehicle gross profit.” Mr. Jackson added, “This quarter we once again demonstrated the strength of our diversified business model, and our ability to react quickly and execute effectively in a changing marketplace.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 25.7% and in the fourth quarter of the last fiscal year, the figure rose 9.1%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 3 cents, and in the fourth quarter of the last fiscal year, it was ahead by 10 cents.

Gross margins expanded last quarter, rising 0.4 percentage point to 17.5% from the year earlier quarter. This snaps a streak of two consecutive quarters of shrinking margins.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 16.3% to $3.31 billion from the year earlier quarter.

Competitors to Watch: Group one Automotive, Inc. (NYSE:GPI), Penske Automotive Group, Inc. (NYSE:PAG), Sonic Automotive, Inc. (NYSE:SAH), Asbury Automotive Group, Inc. (NYSE:ABG), Copart, Inc. (NASDAQ:CPRT), CarMax, Inc (NYSE:KMX), Lentuo Intl. Inc (ADR) (NYSE:LAS), Lithia Motors, Inc. (NYSE:LAD), AutoChina Intl. Ltd. (NASDAQ:AUTC), General Motors (NYSE:GM), Toyota (NYSE:T), Ford (NYSE:F), CarMax (NYSE:KMX), AutoZone (NYSE:AZO) and America’s Car-Mart, Inc. (NASDAQ:CRMT).

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

(Source: Xignite Financials)