AutoNation misses by $0.07, misses on revs
- Reports Q4 (Dec) earnings of $0.96 per share, $0.07 worse than the Capital IQ Consensus of $1.03; revenues rose 5.8% year/year to $5.34 bln vs the $5.46 bln Capital IQ Consensus.
- Co said, "In the fourth quarter, new and used vehicle margins on a combined basis declined by $217 per vehicle retailed, or 11%, as compared to the fourth quarter of 2014. As of year-end, our new vehicle inventories increased 13% on a same store basis, as compared to the prior year, driven by a 49% increase in Premium Luxury inventories. We have begun, and will continue through the first quarter, to take the necessary steps to align our costs, inventory, and pricing strategy to adjust to the current market. In 2016, we expect industry new vehicle unit sales will again exceed 17 mln."