Thu, Aug 1, 8:39 PM (88 days ago)
AutoNation, Inc.'s Form 10-Q for the quarter ended June 30, 2024, highlights a decline in financial performance compared to the same period in 2023. Key points include: 1. **Revenue and Profitability**: Total revenue decreased by 5.9% to $6,480.4 million, and net income dropped to $130.2 million from $272.5 million. Diluted earnings per share fell to $3.20 from $6.02. 2. **Segment Performance**: - **Domestic**: Revenue fell by 11.1% to $1,739.4 million, with segment income decreasing by 56.6% to $50.3 million. - **Import**: Revenue increased slightly by 1.1% to $2,018.8 million, but segment income dropped by 37.5% to $108.2 million. - **Premium Luxury**: Revenue declined by 8.5% to $2,398.4 million, and segment income decreased by 35.9% to $141.9 million. 3. **Operational Impact**: A significant cyber incident affecting CDK Global disrupted dealership operations, impacting sales and service processes and contributing to an estimated $1.55 per share loss in earnings for the quarter. 4. **Inventory Levels**: New vehicle inventory days supply increased to 67 days from 26 days in the prior year, reflecting higher manufacturer production levels. 5. **Financial Position**: Cash and cash equivalents stood at $85.9 million, with a revolving credit facility capacity of $1.9 billion. The company repurchased 2.2 million shares for $350 million during the first half of 2024. 6. **Future Outlook**: The company anticipates continued moderation in new and used vehicle margins due to increased inventory levels and expects some residual impacts from the CDK outage in the early part of Q3 2024.