On Jul 3, 2014, we issued an updated research report on
). This Zacks Rank #1 (Strong Buy) stock is performing well in all
AutoNation recorded a 10.3% rise in earnings per share from the
year-ago quarter to 75 cents per share in first-quarter 2014, in
line with the Zacks Consensus Estimate. The year-over-year
improvement in earnings was driven by gross profit in all business
sectors. Revenues increased 6.5% to $4.36 billion but missed the
Zacks Consensus Estimate of $4.39 billion.
AutoNation is undertaking rapid store expansion to boost sales.
On Apr 1, 2014, the company opened an Audi store in South Orlando.
Additionally, in Jun 2014, it announced an agreement to purchase
Roundtree Chrysler Dodge Jeep Ram in Mobile, AL.
Moreover, AutoNation follows an aggressive share repurchase
policy. In 2012 and 2013, the company repurchased 16.6 million
shares and 1.1 million shares, respectively. Further, AutoNation
bought back 2.4 million shares for an aggregate price of $115.7
million in the first quarter of 2014.
However, rising interest rates pose a threat to the companyas a
significant amount of its debt carries variable rate. The Zacks
Consensus Estimate for AutoNation's 2014 earnings is currently
$3.41 per share, which translates into a year-over-year growth rate
Key Picks from the Sector
Other stocks worth considering in the same industry include
Asbury Automotive Group, Inc.
Group 1 Automotive Inc.
Lithia Motors Inc.
). All these stocks carry a Zacks Rank #1.
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AUTONATION INC (AN): Free Stock Analysis Report
LITHIA MOTORS (LAD): Free Stock Analysis Report
GROUP 1 AUTO (GPI): Free Stock Analysis Report
ASBURY AUTO GRP (ABG): Free Stock Analysis
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