AutoNation Looks to Extend Impressive Earnings Streak

AutoNation, Inc. (NYSE:AN) is the largest automotive retailer in America. The company provides new and pre-owned vehicles and associated services in the United States. AutoNation owns and operates over 315 locations and has sold over 13 million vehicles. This afternoon, AN is trading up 0.7% at $96.95.

On April 13, AutoNation announced that it will release the financial results for the first quarter of 2021 before the open on Tuesday, April 20. AutoNation has managed to consistently outperform earnings expectations on all four of its most recent quarterly reports. For the first quarter of 2020, AutoNation beat analyst estimates by a margin of $0.25 and reported an EPS of $0.91. For the second quarter of 2020, AutoNation increased its EPS to $1.41 and beat expectations by a margin of $1.04. For the third quarter of 2020, AutoNation posted another increase in earnings, rising to $2.38 per share and beating estimates by a margin of $0.73. In the most recent report, AutoNation posted an EPS of $2.43 and beat expectations by a margin of $0.42. Analysts anticipate that AutoNation will be reporting a decreased EPS of $1.85 on Tuesday.

AN has more than tripled over the past year and surged 236% since bottoming at a multi-year low of $28.79 last April. Additionally, shares of AutoNation stock has climbed than 39% year-to-date and is fresh off today's record high of $97.98.

AutoNation stock does have an impressive forward price-earnings ratio of 12.87, which is significantly better than its current price-earnings ratio of 22.62. Based on its current valuation, AN could see its bullish form extended in the short-term, but may possibly struggle to maintain its value in the long-term.

The options pits, on the other hand, have been leaning bearish. The security's 50-day put/call volume ratio of 1.74 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 95% of readings from the past year.