- AutoNation Inc (NYSE:AN) reported first-quarter FY22 sales growth of 14% year-on-year to $6.75 billion, beating the consensus of $6.48 billion.
- The company attributed the Q1 sales growth to a 47% increase in used vehicle revenue.
- Segment income from Domestic rose 26% Y/Y, Import grew 48%, and Premium Luxury rose 45%.
- Gross profit improved 27% Y/Y to $1.3 billion, and the gross profit margin expanded 190 basis points Y/Y to 19.4%. After-Sales gross profit increased 19% to $461 million.
- Selling, general and administrative (SG&A) expenses increased by 14.4%.
- The operating margin for the quarter was 7.7%, and operating income was $519 million, a 54% Y/Y increase.
- Adjusted EPS of $5.78 beat the consensus of $5.25.
- Cash and equivalents totaled $608.1 million as of March 31, 2022.
- AutoNation has approximately $376 million remaining authorization for share repurchase as of April 19, 2022.
- Price Action: AN shares are trading lower by 4.13% at $101.25 on the last check Thursday.
