AutoNation Q4 Revenue Rises, Beats Expectations

AutoNation reported a 6% rise in fourth-quarter revenue to $7.21 billion, exceeding analysts' expectations of $6.8 billion, driven by a 12% increase in new vehicle sales. Despite higher costs leading to a drop in net income to $186.1 million or $4.64 per share from $216.2 million or $5.04 per share last year, adjusted earnings still surpassed estimates at $4.97 per share, against the expected $4.26. The company's same-store revenue increased by 8%, reflecting a strong performance in new vehicle sales and improvements in Customer Financial Services and After-Sales profits. AutoNation's stock is considered fairly valued, trading close to its estimated fair value of $203 per share, with a current price of $191. The company remains confident in its growth strategy and ability to deliver shareholder returns despite changing market conditions.