AutoNation Inc. (AN) has posted a 22% rise in sales to 19,283 vehicles during May. With this, the automotive retailer has outpaced the sales gain of 19% in the U.S. during the month.
Sales in AutoNation’s Domestic segment — comprising stores that sell vehicles manufactured by General Motors (MTLQQ), Ford (F) and Chrysler — advanced 28% to 5,852 vehicles. Sales in the Import segment — including stores that sell vehicles manufactured primarily by Toyota (TM), Honda (HMC) and Nissan (NSANY) — went up 21% to 10,232 vehicles. Sales in the Premium Luxury segment — consisting of stores that sell vehicles manufactured primarily by Mercedes, BMW and Lexus — escalated 15% to 3,199 vehicles.
Light vehicle sales in the U.S. stood at 11.63 million units at a seasonally adjusted annualized rate in May. All the major automakers reported double-digit rises in U.S. sales except Toyota. The sales gains were driven by a surge of new models in the market and an expansion of fleets by rental car companies and governments.
AutoNation showed a 55% increase in profits to $58 million or 34 cents per share in the first quarter of 2010 from $40 million or 22 cents per share in the prior-year quarter. With this, the automotive retailer has exactly matched the Zacks Consensus Estimate.
Revenues in the quarter appreciated 19% to $2.8 billion, driven by a marked improvement of 24% in new and used retail vehicle revenues. New retail vehicle revenue escalated 24% to $1.47 billion. This translated into revenue per vehicle of $32,253, an increase of 4% from the year-ago level. The retailer’s new vehicle sales rose 19% to 45,438 units.
Used retail vehicle revenues went up 23% to $646 million. Used retail vehicle sales rose 11.5% to 37,773 units, transforming into per-vehicle revenue of $17,102, an increase of 10.5%.
Revenues in the parts and services business advanced 1% to $540 million, while in the finance and insurance business rose 25% to $96 million. Wholesale revenues increased 34% to $89 million.
AutoNation Inc. is the largest automotive retailer in the U.S. and is about twice the size of its nearest competitor. As of March 31, 2009, the company owned and operated 249 new vehicle franchises from 204 dealerships located in major metropolitan markets in 15 states, with about 75% of sales being focused on the Sunbelt region of the U.S. (with 50% in Florida and California).
The company sells 33 different brands of new vehicles, its core brands being Ford, General Motors, Chrysler, Toyota, Nissan, Honda and BMW. These core brands represented 96% of the sales in 2009.
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