Ahead Of AutoNation's Q1 Results

(RTTNews) - America's largest automotive retailer AutoNation Inc. (AN) is gearing up to report first-quarter results before the bell on Friday, April 22. Analysts polled by Thomson Reuters estimate the company to earn $0.93 per share on revenue of $5.29 billion. Analysts' estimate typically exclude certain special items.

The company continues to actively pursue acquisitions and new store opportunities with a focus on enhancing brand representation within its existing markets and markets that can be supported by its existing management infrastructure.

Moreover, AutoNation said it will continue to be selective and prudent in its capital with a focus on investing to produce strong returns and long-term shareholder value.

In 2016, the company expects industry new vehicle unit sales to again exceed 17 million.

Store Acquisition

For the full year 2015, AutoNation completed the acquisition of 22 stores generating about $1 billion in annual revenue.

In the first quarter of 2016, the company is on track to complete the previously announced acquisition of the 12 store Allen Samuels Auto Group in Texas, which generates about $800 million in annual revenue.

Previous Quarter Results

Fourth quarter adjusted net income from continuing operations was $107 million or $0.96 per share compared to $117 million or $1.02 per share in the same period of last year.

On a GAAP basis, fourth quarter 2015 net income from continuing operations was $98 million or $0.87 per share compared to $116.7 million or $1.02 per share in the prior year period.

Fourth quarter 2015 revenue totaled $5.3 billion compared to $5.0 billion in the year-ago period, an increase of 6%, driven by stronger performance in all business sectors - new vehicles, used vehicles, parts and service, and finance and insurance. In the fourth quarter of 2015, AutoNation's retail new vehicle unit sales increased 4% overall and 1% on a same store basis.

Total gross profit was $812 million compared to $784 million in the year-ago period, an increase of 4%. Operating income was $200 million compared to $227 million last year, a decrease of 12%.

During the quarter, the company experienced particular weakness in Premium Luxury segment, which had a significant impact on its fourth quarter financial results. Hence, AutoNation said it has begun and "will continue through the first quarter to take the necessary steps to align cost, inventory and pricing strategy to the current market."