AutoNation (AN) Q1 2022 earnings summary

Executive summary

• Record Q1 2022 results: revenue $6.8B, up 14% YoY; operating income rose 54%, and GAAP diluted EPS reached $5.78, up 103%.

• Used vehicle revenue increased 47% and retail unit sales rose 11%; After-Sales gross profit increased 19%.

Financial highlights

• Revenue was $6,752.8M, up 14.4% YoY; gross profit was $1,308.9M, up 26.7%.

• Operating income rose to $519.0M from $336.9M; net income was $362.1M versus $239.4M.

• GAAP diluted EPS was $5.78 versus $2.85, up 103%; adjusted diluted EPS was $5.78 versus $2.79, up 107%.

• Used vehicle revenue grew 47.1%; new vehicle revenue declined 5.9%; parts and service revenue increased 18.0%.

• Gross profit per retailed vehicle: new $6,112, up 123%; used $1,566, down 10%; finance and insurance $2,672, up 20%.

Outlook and guidance

• Plans call for 12 additional AutoNation USA store openings over the next 12 months; target is more than 130 stores by end-2026.

• Expansion plans leverage existing used-vehicle capabilities, digital tools, data and analytics; two new-market stores opened during Q1 and were profitable, exceeding expectations.