AutoNation Inc (NYSE: AN) reported fourth-quarter FY22 sales growth of 2% year-on-year to $6.69 billion, beating the consensus of $6.52 billion.
Higher average selling prices of vehicles, increased new vehicle unit sales, and continued growth in After-Sales, more than offset lower used vehicle unit sales.
New vehicle retail unit sales rose 4%, and used vehicle retail unit sales declined 9%.
Segment income from Domestic fell 25% Y/Y, Import dropped 5%, and Premium Luxury was flat.
Gross profit declined 3% Y/Y to $1.28 billion, and the gross profit margin contracted 20 basis points Y/Y to 19.1%. After-Sales gross profit increased 12% to $479 million.
Selling, general and administrative (SG&A) expenses increased by 1.5%.
Operating margin for the quarter was 6.3%, and the operating income was $424.9 million, a 20% Y/Y decrease.
Adjusted EPS of $6.37 beat the consensus of $5.83.
Cash and equivalents totaled $72.6 million as of Dec. 31, 2022. The company said its full-year 2022 cash flows from operations were a record $1.7 billion.
In 2022, the company reduced shares outstanding by 25% as it repurchased 15.6 million shares, including 4.6 million during the fourth quarter.
As of Feb. 15, 2023, AutoNation had approximately 47 million shares outstanding, down from 83 million at the end of 2020.
Price Action: AN shares are trading higher by 8.01% at $152.43 on the last check Friday.
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This article A Massive Car Dealer Is Raking In Money. Here’s Why Autonation Stock Is Soaring originally appeared on Benzinga.com
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