The automotive retailer
) posted a 10% year-over-year increase in retail new vehicle
sales to 22,515 units in Apr 2013. The rise was attributable to
strong sales in the Domestic segment.
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On a same-store basis, retail new vehicle sales went up 7% to
21,950 units. Apr 2013 had 25 selling days compared with 24
selling days in Apr 2012.
Sales in the Domestic segment went up 20% to 7,588 vehicles. The
segment comprises retail automotive franchises that sell vehicles
Ford Motor Co.
), Chrysler and others.
Sales in the Import segment went up 5% to 10,853 vehicles. The
segment covers retail automotive franchises that sell vehicles
Toyota Motor Corp.
Honda Motor Co.
) and others.
Sales in the Premium Luxury segment rose 5% to 4,074 vehicles for
the month. The segment consists of retail automotive franchises
selling vehicles manufactured by Mercedes Benz, BMW, Lexus and
Auto sales in the U.S. slipped below seasonally adjusted rate
(SAAR) of 15 million units to 14.92 million vehicles in April for
the first time since October last year due to weak commercial
customer (fleet) sales. However, it increased from the year-ago
level of 14.42 million units by 3.5%.
It is expected that strong pent-up demand, easier car finance and
improving macroeconomic conditions will continue to act as a
catalyst to rejuvenate U.S. auto sales to the pre-recession
Based in Fort Lauderdale, Fla, AutoNation is the largest
automotive retailer in the U.S. The company owns and operates
about 262 new vehicle franchises that sell 32 brands located in
the major metropolitan markets across 15 states.
AutoNation posted a 21.4% rise in earnings per share to 68 cents
in the first quarter of 2013 from 56 cents in the same quarter of
2012, topping the Zacks Consensus Estimate by 5 cents.
Revenues increased 10.8% to $4.1 billion, slightly ahead of the
Zacks Consensus Estimate of $4.0 billion. The revenue growth was
mainly attributable to strong new vehicle sales during the
quarter. The company retains a Zacks Rank #2 (Buy).