AutoNation, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component AutoNation, Inc. (NYSE:AN) will unveil its latest earnings on Wednesday, July 27, 2011. 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. Investing in Autos: GM, Ford, and Toyota All Have Good News>>

AutoNation, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 47 cents per share, a rise of 23.7% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up, but has dropped from 48 cents during the last month. For the year, analysts are projecting profit of $1.85 per share, a rise of 18.6% from last year.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting net income of 46 cents per share, and the previous quarter, it had profit of 45 cents.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $3.4 billion in revenue this quarter, a rise of 9.3% from the year ago quarter. Analysts are forecasting total revenue of $13.73 billion for the year, a rise of 10.2% from last year’s revenue of $12.46 billion.

Analyst Ratings: Analysts seem relatively indifferent about AutoNation with nine of 12 analysts surveyed maintaining a hold rating.

Key Stats:

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

Revenue rose in the first quarter after seeing a drop the quarter before. Revenue rose 16.3% to $3.31 billion in the first quarter from the year earlier. In the fourth quarter of the last fiscal year, revenue fell 50.8%.

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).

Stock Price Performance: During April 26, 2011 to July 21, 2011, the stock price had risen $5.83 (17.7%) from $33.01 to $38.84. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 14.1% (+$4.85) over that span. It saw one of its worst periods between April 7, 2011 and April 14, 2011 when shares fell for six-straight days, falling 9.5% (-$3.40) over that span. Shares are up $10.64 (+37.7%) year to date.

(Source: Xignite Financials)

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