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AutoNation Swings to Loss - Adjusted Profit Beats Estimates

AutoNation, the No. 1 U.S. car dealer, swung to a first-quarter loss while adjusted earnings beat analysts' estimates.

AutoNation  (AN) - Get Report, weighed down by the coronavirus pandemic, swung to a first-quarter loss but reported adjusted earnings that beat analysts' estimates.

The No. 1 U.S. car dealer swung to a GAAP net loss of $2.58 a share compared with a profit of $1.01 in the year-earlier quarter. Adjusted earnings in the latest quarter were 91 cents a share. 

Revenue dropped 6.3% to $4.98 billion from $4.67 billion. 

Analysts surveyed by FactSet were expecting the Fort Lauderdale, Fla., company to report earnings of 70 cents a share on revenue of $4.69 billion. 

Same-store sales fell 5% year over year. 

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AutoNation reported same-store sales fell 37% in April from the year-earlier month. But they strengthened as the month went on: New and used same-store retail sales fell 19% during the final 10 days of the quarter compared with a 52% decline during the first 10 days. 

The company reported impairment charges totaling $315 million after tax, or $3.49 per share, due primarily to covid-19 impacts. 

The company said the lockdown caused "significant disruption" to its first-quarter results as 95% of its revenue came from states with stay-at-home orders. 

AutoNation has a $1.8 billion revolving-credit facility that matures in March 2025. It has more than $1.4 billion in liquidity, including more than $750 million of cash and about $650 million available under the credit facility. 

AutoNation shares at last check were 8% at $41.40.