AutoNation reported third-quarter revenue of $7.01 billion, little changed from a year earlier, while profit declined. Adjusted earnings per share rose 2% to $5.11, marking the company’s seventh consecutive quarter of year-over-year growth on that measure. The company also highlighted record after-sales results, rapid growth in its finance business and a new $1 billion authorization for share repurchases.
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Profit fell on a GAAP basis: Net income was $162.3 million, down 25% from $215.1 million a year earlier. Operating income fell 16% to $314.6 million, and diluted earnings per share declined 14% to $4.87 from $5.65.
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Adjusted earnings moved higher: Adjusted EPS increased from $5.01 to $5.11. The company did not provide the reconciliation details in the material supplied here.
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Vehicle sales and same-store results weakened: Same-store revenue declined 2% to $6.81 billion, while same-store gross profit fell 5% to $1.17 billion. Same-store new-vehicle retail unit sales were down 5% and used-vehicle sales down 6%.
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After-sales and financing were bright spots: AutoNation reported record after-sales gross profit, with customer-pay growth of 6%. Its AutoNation Finance portfolio grew more than 40% year over year, and finance profit was 10 times the prior-year level.
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Buybacks remain a major use of cash: AutoNation repurchased $620 million of shares year to date, reducing shares outstanding by 9%, and said it used nearly 85% of adjusted free cash flow for repurchases. The board approved an additional $1 billion in repurchase authorization; that approval gives the company capacity to buy shares but does not mean the full amount has already been spent.
The results show a mixed quarter: weaker vehicle sales and lower reported operating profit alongside growth in adjusted EPS, after-sales and AutoNation Finance. Buybacks have also reduced the share count, while the new authorization expands the company’s capacity to continue returning capital to shareholders.