FORT LAUDERDALE, Fla. - AutoNation Inc. (NYSE:AN) reported third quarter earnings that fell short of analyst expectations, sending shares down over 5% in premarket trading.
The auto retailer posted adjusted earnings per share of $4.02, missing the consensus estimate of $4.44. Revenue came in at $6.59 billion, below the $6.77 billion analysts were expecting.
AutoNation's results were negatively impacted by lingering effects from a July cyberattack on its software provider CDK Global (NASDAQ:CDK), which reduced earnings by an estimated $0.21 per share. The company also faced headwinds from weather challenges and stop-sale orders from automakers.
"We were able to navigate through a challenging environment, which included the lingering effects of the CDK outage, which we are relieved to now have behind us, weather challenges, and OEM stop-sale orders," said CEO Mike Manley.
Same store new vehicle unit sales grew 2% YoY, while used vehicle sales declined 9.8%. Total revenue fell 4.4% to $6.59 billion compared to $6.89 billion a year ago.
The company's parts and service business was a bright spot, with gross profit rising 2.3% to a record $558 million.
AutoNation repurchased 36,000 shares for $6 million during the quarter. The company has approximately $965 million remaining under its current share repurchase authorization.
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