AutoNation Shares Keep Moving Up (NYSE:AN)

AutoNation Inc. (NYSE:AN) shares are up 2% today, now trading at $18.39 thanks to a revised guidance as the U.S. largest automotive retailer takes center stage.

(bizjournals.com) For the second time in a week, AutoNation has revised its earnings estimate upward in an improving market for car sales. The Fort Lauderdale-based auto retailer (NYSE: AN) said Tuesday morning its new estimate for the first quarter is 32 cents to 35 cents. Last week, AutoNation revised its estimate to 29 cents to 32 cents.

The company said Tuesday that its March 31 announcement of higher sales and revenue was still “in line.” AutoNation is the nation's largest automotive retailer. It expects first quarter 2010 revenue to be about $2.8 billion, up from $2.4 billion for the first quarter of 2009. It expects about 45,000 in new vehicle sales, up by 18 percent from the first quarter of last year, and 38,000 in used vehicle sales, up about 12 percent.

Chairman and CEO Mike Jackson previously said the company was witnessing a “gradual industry recovery in the first quarter of 2010.”

The new earnings estimate represents an improvement from an adjusted 22 cents in the year-ago quarter. Those adjusted earnings in 2009 excluded items detailed under non-GAAP financial measures. The average analyst estimate is now 31 cents a share. The company also expects that an offering of unsecured notes will help it reduce borrowing under an existing credit agreement, among other things.

The offering and credit deals are expected to dilute this year's earnings by about 6 cents a share, excluding the effect of non-recurring transaction expenses and any share repurchases or other uses of capital in 2010. The company will release final first quarter results on April 22.

SOURCE: http://www.bizjournals.com/southflorida/stories/2010/04/05/daily15.html