AutoNation, Inc. (NYSE:AN) CFO Thomas Szlosek offered a softer third-quarter outlook at Morgan Stanley’s 14th Annual Laguna Conference. The automotive retailer’s stock price subsequently declined.
According to Szlosek:
- Service and financial products generate about 80% of AutoNation’s profit (weakness in those segments matters most for earnings).
- Parts-and-service growth should be more modest in Q3 as customers become more selective on maintenance spending and warranty comparisons remain difficult.
- Service contributes roughly half of AutoNation’s profit.
- New-vehicle gross profit per unit will likely fall about 10% sequentially in Q3, citing model-year changeovers, affordability pressure and greater pricing concessions.
- EV demand is weak, with penetration falling to the low single digits from about 8%-9% previously after federal incentives expired.
- Customer Financial Services is seeing some near-term softness, with management expecting a roughly $50 – $100 sequential decline in unit profitability following weaker July and August attachment rates.
One offset is AutoNation Finance. The portfolio is approaching $3 billion, and penetration has reached about 18% of financed vehicles.
AN Technical Setup: Oversold But Trend Remains Bearish
AN remains technically weak, trading 15.6% below its 20-day SMA, 17.5% below its 50-day SMA, and 16.2% below its 200-day SMA.
RSI at 22.45 signals deeply oversold conditions, suggesting the selloff is stretched and could trigger a short-term rebound.
However, the 20-day SMA remains below the 50-day, keeping the near-term trend bearish.
The stock has also fallen below its prior 52-week low of $172.58, which could now act as resistance. A stronger rebound faces additional resistance near $198.
AutoNation Earnings Preview and Analyst Price Target Outlook
Looking further out, the next major catalyst for the stock arrives with the October 22, 2026 (estimated) earnings report.
- EPS Estimate: $5.72 (Up from $5.01 YoY)
- Revenue Estimate: $7.11 Billion (Up from $7.04 Billion YoY)
- Valuation: P/E of 8.1x (Indicates a value opportunity relative to peers)
Analyst Consensus & Recent Actions: The stock has a Buy rating and an average price target of $243.25. Recent analyst moves include:
- Argus Research: Buy (Raises Target to $246.00) (Aug. 11)
- Stephens & Co.: Equal-Weight (Raises Target to $232.00) (Aug. 10)
- Morgan Stanley: Overweight (Raises Target to $250.00) (Aug. 7)
AN Stock Today: AutoNation Slides in Friday Trading
AN Stock Price Activity: AutoNation shares were down 3.69% to $168.43 at the time of publication on Friday, according to Benzinga Pro data.
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