AutoNation, Inc.(NYSE: AN) stock enhanced over 14.6% on November 2nd, 2017 (as of 12:50PM EDT; Source: Google finance) driven by their third-quarter results and Multi-Year Service Agreement with Waymo.
The group partnered with Waymo, the Alphabet Inc., self-driving technology company, and signed a multi-year agreement to support Waymo’s autonomous vehicle program. The group would offer strategic capabilities to maximize the life of Waymo’s vehicles across the United States. The group’s franchised stores, USA stores and other AutoNation locations, would offer long-term vehicle maintenance and repairs for Waymo’s self-driving Chrysler Pacifica hybrid vehicle fleet, and would expand with Waymo as they add additional brands.
For the third quarter of 2017, the group delivered a net income from continuing operations of $98 million, or $1.00 per share. Hurricane Irma hurt the third quarter of 2017 net income from continuing operations by over $8 million after-tax, or $0.08 per share. For the third quarter of 2017, the group’s retail vehicle unit sales rose 1%, or up 2% on a same store basis, against pcp. The group’s same store used vehicle gross profit surged 9% from the same period a year ago, and same store used vehicle gross profit per vehicle retailed was up $160 against the second quarter of 2017
As per their Domestic segment performance, the income fell by 18% on a yoyo basis during the third quarter of 2017 $69 million as compared to segment income of $84 million. Their Import segment income enhanced 25 yoy to $81 million from $79 million, in pcp. As per their Premium Luxury segment performance, the income fell 3% yoy to $79 million from $81 million, in prior corresponding period
The group bought back 9.2 million shares, or 9% of June 30, 2017 shares outstanding, during the third quarter of 2017, for an overall purchase price of $400 million. AutoNation stock generated an outstanding returns of over 40.1% in the last three months (as of 1:02PM EDT November 2nd, 2017; Source: Google finance)