- Automotive retailer AutoNation Inc (NYSE:AN) reported fourth-quarter FY21 sales growth of 14% year-on-year, to $6.58 billion, beating the analyst consensus of $6.37 billion.
- The company attributed the Q4 sales growth to a 55% increase in used vehicle revenue, more than offsetting the decline in new vehicle revenue of 7%.
- Segment income from Domestic rose 49% Y/Y, Import grew 70%, and Premium Luxury rose 50%.
- Gross profit improved 34% Y/Y to $1.3 billion, and the gross profit margin expanded 300 basis points Y/Y to 20%.
- Selling, general and administrative (SG&A) expenses were 57.2% of gross profit.
- The operating margin for the quarter was 8.1%, and operating income was $532.4 million, a 72% Y/Y increase.
- Adjusted EPS of $5.76 beat the consensus of $4.96.
- Cash and equivalents totaled $60.4 million as of December 31, 2021.
- AutoNation has $776 million remaining authorization for share repurchase as of February 15, 2022.
- Looking ahead, the company expects consumer demand for personal vehicle ownership to remain strong for the foreseeable future.
- Price Action: AN shares are trading lower by 3.41% at $107.04 on the last check Thursday.
