AutoNation Sales Escalate in May - Analyst Blog
June 06 2012 - 12:38PM
Zacks
AutoNation Inc. (AN) recorded a significant
rise in new vehicles sales in May 2012. Sales for the month surged
45% to 23,763 units, mainly driven by a boost in demand for
imported vehicles along with higher sales across all segments
compared with the comparable month a year ago.
Sales in the Domestic segment went up 21% to 7.260 units. The
segment comprises retail automotive franchises that sell vehicles
manufactured by Ford Motor Co. (F),
General Motors Company (GM) and Chrysler.
Sales in the Import segment hiked 78% to 2,300 units. The
segment comprises retail automotive franchises that sell vehicles
produced by Toyota Motor Corp. (TM), Honda
Motor Co. (HMC) and Nissan Motor Co.
(NSANY).
Sales in the Premium Luxury segment swelled 23% to 4,203 units
during the month. The segment consists of retail automotive
franchises that sell vehicles manufactured by Daimler
AG’s (DDAIF) Mercedes Benz, BMW and Lexus.
Last month, light vehicle sales in the U.S. grew 25.7% to 1.33
million units from 1.06 million units in May 2011. Seasonally
adjusted annual rate (SAAR) was 13.78 million vehicles. The boost
in sales was driven by increased selling days along with revival in
demand, favorable credits and higher incentives.
AutoNation posted first-quarter 2012 earnings of 56 cents per
share, up 22% from 46 cents in the year-ago quarter, surpassing the
Zacks Consensus Estimate by 3 cents.
Revenues in the quarter rose 10.4% to $3.7 billion from $3.3
billion in the corresponding quarter last year. This was higher
than the Zacks Consensus Estimate of $3.6 billion. The higher
revenues were attributable to improvement in new vehicle sales. The
company’s effort to expand its dealer network by investing in
existing stores and service centers will help it outperform it
peers.
Headquartered in Fort Lauderdale, Florida, AutoNation is the
largest automotive retailer in the U.S. The company owns and
operates 260 new vehicle franchises that sell 32 brands located in
the major metropolitan markets in 15 states. The company offers a
range of automotive products and services, including new vehicle,
used vehicles, vehicle maintenance and repair services, vehicle
parts, vehicle protection products and other aftermarket
products.
Currently, AutoNation retains a Zacks #1 Rank, which translates
into a short-term (1 to 3 months) Strong Buy rating. We have a
long-term (more than 6 months) Outperform recommendation on the
stock.
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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