Automotive retailer AutoNation, Inc.’s AN total retail sales of new vehicles increased 9% year over year to 27,862 units in Jun 2015. On a same-store basis, retail new vehicle sales improved 7% from the year-ago figure.
Segment Results
Retail new vehicle unit sales in AutoNation’s Domestic segment went up 9% to 8,282 vehicles. The segment comprises retail automotive franchises that sell vehicles manufactured by Ford Motor Co. F, Chrysler and other automakers.
Sales at AutoNation’s Import segment increased 8% to 13,110 vehicles in Jun 2015 from the corresponding month last year. The segment covers retail automotive franchises that sell vehicles manufactured by Toyota Motor Corporation TM, Honda Motor Co., Ltd. HMC and others.
In the Premium Luxury segment, sales advanced 14% year over year to 6,470 vehicles during the month. This segment consists of retail automotive franchises which offer vehicles made by Mercedes Benz, BMW, Lexus and other carmakers.
Quarterly Sales
AutoNation recorded a year-over-year increase of nearly 7% in new vehicle sales to 86,794 units in the second quarter of 2015. On a same-store basis, retail new vehicle sales improved 4% year over year in the quarter. The Domestic segment’s sales improved 8% to 26,826 units, the Import segment’s sales inched up 1% to 41,018 vehicles, and the Premium Luxury segment sales surged 17% to 18,950 units in the quarter.
U.S. Auto Sales
Rising U.S. auto sales are contributing to AutoNation’s sales growth. U.S. light-vehicle sales rose 3.9% year over year to 1.48 million units in Jun 2015. Also, sales improved 4.4% year over year to 8.52 million units in the first half of 2015. This is the highest first-half sales results since 2005. Sales on a seasonally adjusted annualized rate (“SAAR”) basis declined to 17.16 million units in Jun 2015 from 17.78 million units in May 2015. However, the SAAR improved from 16.91 million units in Jun 2014.
The impressive sales volume was driven by strong demand for light trucks, crossovers and SUVs. These vehicle segments have been gaining from low gas price as well as the easy availability of credit with lower interest rates and longer repayment periods.
Earnings Review
AutoNation, which currently carries a Zacks Rank #2 (Buy), is set to report second-quarter 2015 results on Jul 22. In the trailing four quarters, it has delivered an average positive earnings surprise of 11.49%. The Zacks Consensus Estimate for second-quarter 2015 stands at $1.01 per share.
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