) witnessed a 37.5% increase in earnings per share to 66 cents in
the third quarter of 2012 from 48 cents in the corresponding
quarter last year. However, profits missed the Zacks Consensus
Estimate by a penny. In absolute terms, profits escalated 15.8%
to $81.9 million from $70.7 million in the year-ago quarter.
Revenues for the quarter increased 12.2% to $3.93 billion from
$3.51 billion in the year-ago quarter. The growth in revenues was
driven by strong retail new vehicle sales. Revenues marginally
missed the Zacks Consensus Estimate of $3.95 billion.
Revenues from new vehicle sales improved 19.1% to $2.2 billion in
the quarter. New vehicle retail sales increased 21.4% to 68,350
units. However, revenues per vehicle dipped 1.9% to $32,780. On a
same-store basis, new vehicle retail sales went up 21.2% to
Revenues from used vehicle (retail and wholesale) crept up 2.7%
to $936.4 million in the quarter. Used vehicle retail sales
improved 3.2% to 45,643 units with revenues per vehicle
increasing marginally by $131.0 to $17,779. Same-store used
vehicle sales rose 2.7% to 45,434 units with a $160 increase in
per-vehicle same-store revenues to $17,808.
Revenues from parts and services went up 3.3% to $596.8 million.
Meanwhile, the company's finance and insurance business witnessed
a 20.6% growth in revenues to $147.0 million.
Gross profit increased 8.2% to $622.6 million from $575.2 million
in the year-ago quarter. The improvement was driven by higher
gross profit earned from the finance and insurance and used
vehicle businesses. Operating income improved 13.6% to $163.7
million from $144.1 million in the third quarter of 2011.
Gross profit per new vehicle retailed decreased 13.7% to $2,117
while gross profit per used vehicle retailed rose 4.2% to $1,588.
Gross profit from finance and insurance per vehicle retailed
swelled 6.3% to $1,290.
The Domestic segment comprises stores selling vehicles
General Motors Company
Ford Motor Co.
) and Chrysler. Revenues in this segment improved 6.7% to $1.3
billion. Unit sales augmented 9% to 21,579 vehicles. Segment
operating income improved 11.1% to $51.9 million from $46.7
million in the third quarter of 2011.
Revenues from the Import segment - comprising stores that sell
vehicles, manufactured primarily by
Toyota Motor Corporation
Honda Motor Co.
Nissan Motor Co.
) - increased 20.1% to $1.5 billion. Unit sales surged 34.7% to
35,578 automobiles. Segment operating income increased 12.9% to
$69.0 million from $61.1 million a year ago.
Revenues in the Premium Luxury segment - comprising stores that
sell vehicles manufactured primarily by
) Mercedes, BMW and Lexus - went up 8.8% to $1.1 billion. Unit
sales rose 10.6% to 11,193 vehicles. Segment operating income
climbed 17.8% to $62.9 million from $53.4 million in the
corresponding quarter last year.
AutoNation's cash and cash equivalents increased to $98.6 million
as of September 30, 2012 from $67.3 million as of September 30,
2011. The company's inventory was valued at $2.1 billion as of
September 30, 2012 versus $1.6 billion as of September 30, 2011.
Meanwhile, capital expenditures increased to $122.8 million
during the first nine months of 2012 from $113.6 million in the
same period last year.
Headquartered in Fort Lauderdale, Florida, AutoNation is the
largest automotive retailer in the U.S. The company owns and
operates about 261 new vehicle franchises that sell 32 brands
located in the major metropolitan markets across 15 states.
The company offers an array of automotive products and
services, ranging from new vehicles, used vehicles, vehicle
maintenance and repair services, vehicle parts, vehicle
protection products to other aftermarket products.
AUTONATION INC (AN): Free Stock Analysis
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FORD MOTOR CO (F): Free Stock Analysis Report
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NISSAN ADR (NSANY): Free Stock Analysis
TOYOTA MOTOR CP (TM): Free Stock Analysis
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Currently, AutoNation retains a Zacks #3 Rank, which translates
into a short-term (1 to 3 months) Hold rating and we have a
long-term (more than 6 months) Outperform recommendation on the