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Stifel Comments on AutoNation's (AN) Q2 Results; Missing Used Car Boost

July 17, 2014 9:08 AM EDT
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Stifel is issuing brief commentary on AutoNation (NYSE: AN) following Q 2 results release ealier in the session.

Analyst James Albrtine commented, AN reported 2Q14 EPS of $0.83, below our $0.88 model (Street: $0.86). Drivers of the EPS miss include (a) a used unit comp decline of -0.5%, surprising to us given growing off-lease supply and recent AN used initiatives (including perceived benefits from coast-to-coast branding), and (b) lower adjusted SG&A leverage than we expected. We would note reported comp ASPs support industry commentary that pricing/incentives remain rational. We await further commentary from management on the environment in 2Q14, but our sense is perhaps the late surge in import/luxury fleet sales dampened an otherwise strong start to the quarter. As an aside, +6.2% P&S comp growth is impressive, and on track with our broader expectations for the group.

The firm hs AutoNation witha Hold rating.

For an analyst ratings summary and ratings history on AutoNation Inc. click here. For more ratings news on AutoNation Inc. click here.

AutoNation Inc. closed at $60.83 yesterday.



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