AutoNation Q4 net income slips 26% while revenue rises 1.7%

Jessica Thompson

AutoNation Inc.’s revenue rose slightly in the fourth quarter of 2022, but net income plunged as the dealership group retailed fewer used vehicles and per-vehicle profitability slid.

Net income dropped 26 percent to $286.4 million, AutoNation reported Friday. Revenue rose 1.7 percent to $6.7 billion in the quarter.

AutoNation’s new-vehicle retail sales increased 4.3 percent in the quarter compared with the year-earlier period, but used-vehicle retail sales dropped 9.2 percent.

AutoNation CEO Mike Manley in a statement highlighted the retailer’s strategy moves in 2022.

“During the year, we expanded our footprint, introduced additional transportation solutions, and leveraged our strong cash flow to fund investments and return capital to shareholders,” Manley said.

AutoNation acquired CIG Financial in 2022 and rebranded it as AutoNation Finance, an in-house captive finance company. The retailer also opened four more AutoNation USA used-vehicle stores during the year, and it acquired four dealerships in Colorado from Moreland Auto Group in December. In January, AutoNation finalized its acquisition of RepairSmith, a mobile automotive repair and maintenance provider.

AutoNation repurchased 4.6 million shares in the fourth quarter and 15.6 million shares for all of 2022. On Wall Street, investors liked the results and AutoNation shares rose 10.5 percent to $156.10 in morning trading.

Q4 revenue: $6.7 billion, up 1.7 percent

Q4 net income: $286.4 million, down 26 percent

Q4 sales: New-vehicle retail sales of 60,074 vehicles, up 4.3 percent; used-vehicle retail sales of 67,608, down 9.2 percent

2022 revenue: $26.99 billion, up 4.4 percent

2022 net income: $1.38 billion, up 0.3 percent

2022 sales: New-vehicle retail sales of 229,971, down 12 percent; used-vehicle retail sales of 299,806, down 1.5 percent

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