AutoNation (NYSE:AN) delivered a stellar fourth-quarter performance, exceeding analyst expectations but shares dropped more than 3% intra-day today.
The automotive retailer showcased solid growth across its core business segments, reinforcing its market position and operational strength. For Q4 2024, adjusted earnings per share came in at $4.97, handily beating the consensus estimate of $4.24. Revenue surged to $7.21 billion, surpassing Wall Street forecasts of $6.67 billion and reflecting an 8% year-over-year increase on a same-store basis.
New vehicle sales remained a key growth driver, with same-store unit sales rising 12% during the quarter. Meanwhile, used vehicle gross profit climbed 14%, demonstrating resilience in the pre-owned segment. Other revenue streams also showed steady gains, with After-Sales and Customer Financial Services reporting same-store gross profit growth of 5% and 6%, respectively.
AutoNation continued its aggressive share repurchase strategy, buying back 0.6 million shares for $104 million in Q4. For the full year 2024, the company repurchased 2.9 million shares, reducing outstanding shares by 7% and investing $460 million in buybacks.
