AutoNation Sales Dip on Supply Crunch - Analyst Blog
June 03 2011 - 10:30AM
Zacks
AutoNation Inc. (AN) reported a 15% fall in new
vehicle sales to 16,347 vehicles in May due to shortages in supply
of vehicles, especially from Japan that accounts for 52% of its
sales. The Japanese automotive industry has been hit hard by the
earthquake and tsunami on March 11 that damaged many parts
supplying companies’ plants, leading to a parts shortage.
Sales of the Domestic brands, which comprise of stores that sell
vehicles manufactured by General Motors (GM),
Ford Motor Co. (F) and Chrysler LLC, inched up 3%
to 5,995 units.
Sales of the Import brands, comprising stores that sell vehicles
manufactured primarily by Toyota Motor Corp. (TM),
Honda Motor Co. (HMC) and Nissan Motor
Co. (NSANY), slashed 30% to 7,110 units. The twin disaster
in Japan led many automakers to suspend or cut back production at
their plants on the back of parts shortages, leading to dearth of
vehicles supplied by them.
Meanwhile, sales of the Premium Luxurybrands, comprising stores
that sell vehicles including Daimler AG’s (DDAIF)
Mercedes Benz, BMW and Toyota Lexus, increased 1% to 3,242
units.
AutoNation’s sales decrease was more pronounced than the overall
sales decline in the U.S. during the month under study. Last month,
auto sales in the U.S. dipped 3.7% on a year-over-year basis to
1.06 million vehicles. It has touched the lowest rate in 8 months
since 11.76 million vehicles recorded in September 2010.
AutoNation, a Zacks #3 Rank (Hold) stock, posted a profit of
$70.3 million or 46 cents per share in the first quarter of 2011,
compared with $58.8 million or 34 cents in the year-ago period.
With this, the company exceeded the Zacks Consensus Estimate of 43
cents per share.
Total revenues amounted to $3.31 billion, up 16.5% from $2.84
billion last year led by massive rise in new and used retail
vehicle sales. Reported revenues also surpassed the Zacks Consensus
Estimate of $3.23 billion. Operating income improved to $140.0
million from $115.1 million a year ago.
New vehicles added $1.79 billion to total revenues, up 22.6%
from last year’s $1.46 billion. The retailer’s new vehicle sales
rose 22.8% to 55,710 units, transforming into revenues of $32,043
per vehicle, a marginal decrease from last year’s $32,209. However,
the company expects new vehicle sales of 12 million units for full
year 2011, given the supply constraints from Japan.
AUTONATION INC (AN): Free Stock Analysis Report
DAIMLER AG (DDAIF): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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