AN - AutoNation: Strong Q1 Results With Aggressive Buybacks Continuing
2024-04-26 12:15:30 ET
Summary
- AutoNation, Inc. shares surged over 8% after reporting strong quarterly results, bringing them back toward their highs from last summer.
- The company's first-quarter earnings per share beat expectations, with revenue growing by 2% to $6.5 billion.
- AutoNation's core source of earnings, maintenance, remains strong, offsetting the normalization of vehicle margins.
- I expect ongoing buybacks, which continue to boost run-rate EPS, creating further shareholder value.
Shares of AutoNation, Inc. ( AN ) soared over 8% on Friday after reporting strong quarterly results. This brings shares back towards their highs seen last summer, and they are up 35% from a year ago. I reiterated AN as a buy last October , and since that recommendation, shares have rallied 33% vs. the 24% gain in the S&P 500 (SP500). In the process, they have blown past my $150 price target, making now an opportune time to revisit the stock....
AutoNation: Strong Q1 Results With Aggressive Buybacks Continuing