AutoNation (AN) Q2 2022 earnings summary

Executive summary

• Q2 2022 diluted EPS reached a record $6.48, up 34% YoY; operating income was a record $558.1M, up 5%.

• Revenue was $6.87B, down 2% YoY, while gross profit rose 3% to $1.36B; net income declined 2% to $376.3M.

Financial highlights

• Q2 revenue: new vehicles $2.94B, down 14% YoY; used vehicles $2.52B, up 13%; parts and service $1.04B, up 9%.

• Q2 gross profit increased 3% to $1.36B; After-Sales gross profit rose 11% to $482M YoY.

• H1 revenue rose 6% to $13.62B; gross profit increased 13% to $2.67B and operating income rose 24% to $1.08B YoY.

• H1 net income was $738.4M, up 18% YoY; diluted EPS was $12.25, up 61%.

Outlook and guidance

• Target is more than 130 AutoNation USA stores in operation coast-to-coast by end-2026; the 12th store, in Kennesaw, Georgia, was planned to open in Q3 2022.

• CIG Financial acquisition was expected to close within 90 days, subject to customary closing conditions and regulatory approvals.