-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
AutoNation (AN) posted Q1 adjusted EPS of $4.69 vs. $4.68, ahead of the $4.61 consensus. Net sales fell 2% to $6.55B ($100M below consensus) and gross margin expanded 30 bps to 18.5% (40 bps ahead of consensus). The decline in revenue primarily reflected pressure in new vehicle unit sales, as same-store unit sales declined 9% for new vehicles and 5% for used vehicles. AN repurchased 1.5M shares for $300M in Q1, representing a 4% quarterly share count reduction. So far in Q2 (through April 29), AN has bought back an additional 0.4M shares for $91M, leaving $685M on its share repurchase authorization. At the end of Q1, AN possessed cash and equivalents of $66M, up slightly from $59M at year-end 2025. Total liquidity stood at $1.6B at quarter-end. Non-vehicle debt of $4.12B was up from $3.98B at year-end 2025. The quarter represented AN's sixth consecutive earnings beat. While its top line came in a bit light, margins exceeded expectations and AN continues to shrink its share counts through aggressive buybacks.