Earnings Preview: AutoNation

AutoNation (AN) is expected to report Q4 earnings Thursday with a conference call scheduled for 11:00 am ET.

Guidance

Analysts are looking for a profit of 32c on revenue of $4.23B. The consensus is 29c to 34c for EPS, and revenue of $4.16B to $4.45B, according to First Call. According to industry analysts, poor auto sales and a looming recession will most likely prove troublesome for the auto retailer. They also cite a particularly negative environment in the California and Florida housing markets, which is highly correlated to light truck sales.

Analyst analysis

The company has struggled over the last few quarters and analysts see continued pressure. Deutsche Bank expects AutoNation to report worse new vehicle sales than the rest of the industry. They also see same store sales as flat to negative. Kevin Dann & Partners says consolidated sales weakness is going to impact the stock for most of FY08, and they lowered their share price target to $16 from $20 to reflect reduced estimates.