Imported Vehicles Drive AutoNation - Analyst Blog
December 17 2012 - 12:03PM
Zacks
AutoNation Inc. (AN) posted a 21% rise in new
vehicle sales in November mainly driven by strong sales growth in
its Import brands. The Fort Lauderdale, Florida-based automotive
retailer’s total sales stood at 22,571 units during the month.
Sales of Domestic brands, which comprise stores that sell vehicles
manufactured by General Motors (GM), Ford
Motor Co. (F) and Chrysler LLC, grew 9% on a
year-over-year basis to 6,444 units.
Sales of Import brands, comprising stores that sell vehicles
manufactured primarily by Toyota Motor Corp. (TM),
Honda Motor Co. (HMC) and Nissan Motor
Co. (NSANY), improved 27% to 10,909 units.
Meanwhile, sales of the Premium Luxury brands, comprising stores
that sell vehicles including Daimler AG’s (DDAIF)
Mercedes Benz, BMW and Toyota Lexus, escalated 25% to 5,218
units.
Total sales in the U.S. grew 15% to 1.14 million vehicles or 15.5
million on a seasonally adjusted annual rate (SAAR) basis in the
month, driven by pent-up demand generated from Hurricane Sandy as
well as from the aging vehicles, and improving macroeconomic
conditions. It was the five-year high sales recorded by the
industry since 2007.
AutoNation reached deals to acquire Audi, Porsche and three
Volkswagen (VLKAY) stores in Dallas from Boardwalk
Auto Group and Spring Chrysler Jeep Dodge Ram dealership from
Alfred Flores and Bruce Glascock, both formerly involved with Red
McCombs Automotive Group, based in San Antonio.
With the closure of these deals, the company will own and operate
50 franchises in Texas. It expects the stores to sell a total of
14,000 new and used vehicles this year, generating about $575
million in revenues.
AutoNation, a Zacks #3 Rank (Hold) stock, witnessed a 37.5%
increase in earnings per share to 66 cents in the third quarter of
2012 from 48 cents in the corresponding quarter last year. However,
profits missed the Zacks Consensus Estimate by a penny. In absolute
terms, profits escalated 15.8% to $81.9 million from $70.7 million
in the year-ago quarter.
Revenues for the quarter increased 12.2% to $3.93 billion,
marginally lower than the Zacks Consensus Estimate of $3.95
billion. The growth in revenues was driven by strong retail new
vehicle sales.
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
(VLKAY): ETF Research Reports
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