AutoNation Inc (NYSE:AN) reported second-quarter FY23 sales growth of 0.3% year-on-year to $6.89 billion, beating the analyst consensus of $6.74 billion.
Higher New Vehicle and After-Sales revenue offset the decrease in Used Vehicle revenue.
New vehicle retail unit sales increased 8%, and used vehicle retail unit sales declined 11%.
Segment income from Domestic fell 24% Y/Y, Import dropped 10.4%, and Premium Luxury decreased 13.9%.
Gross profit declined 2% Y/Y to $1.33 billion, and the gross profit margin contracted 40 basis points Y/Y to 19.4%. After-Sales gross profit increased 13% to $543 million.
Operating margin for the quarter was 6.4%, and the operating income was $439.2 million, a 21% decrease Y/Y.
Net income declined 28% Y/Y. Adjusted EPS of $6.29 beat the consensus of $5.90.
Cash and equivalents totaled $63.7 million as of June 30, 2023.
AutoNation repurchased 1.6 million shares of common stock for an aggregate purchase price of $207 million in Q2.
“The strong performance during the quarter reflects the continued resiliency of our operations and the benefits of our diversified business model,” said CEO Mike Manley.
.Price Action: AN shares are trading lower by 6.26% at $165.85 on the last check Friday.
