AutoNation's Q3 Stalls: Earnings And Sales Miss Street View As CDK Outage Takes A Toll
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AutoNation, Inc. (NYSE:AN) shares are trading lower after the company reported third-quarter results.
The company reported adjusted earnings per share of $4.02, missing the street view of $4.38. Quarterly sales of $6.586 billion missed the analyst consensus estimate of $6.71 billion.
The third quarter results were negatively affected by the lingering impact of the CDK outage in July, which reduced earnings per share by approximately $0.21.
Domestic Segment revenues were $1.8 billion, down 10.5%; Import Segment revenues were $2.0 billion, down 1.5%; and Premium Luxury Segment revenues were $2.4 billion, down 3.6%.
Gross profit slumped 9% year over year to $1.182 billion, while adjusted operating income fell 23% to $320.3 million.
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New vehicle gross profit decreased by $74 million, reflecting a gross profit per vehicle retailed of $2,804, down from $4,025 a year ago, despite a 1% increase in unit sales.
Used vehicle gross profit fell by $17 million, with gross profit per vehicle retailed at $1,589 compared to $1,746 last year, alongside an 8% decline in unit sales.
In contrast, after-sales gross profit rose by $12 million, or 2%, reaching $558 million, driven by higher revenue and a 50-basis point increase in margin.
During the quarter, AutoNation divested seven Domestic stores and one Import store, which represented a total of 11 franchises.
As a result of these divestitures, the company received net proceeds of $156 million and recognized a pre-tax gain of $53.9 million.
The company exited the quarter with cash and equivalents worth $60.2 million, while inventory totaled $3.530 billion.
Price Action: AN shares are trading lower by 4.07% to $156.54 premarket at last check Friday.
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This article AutoNation's Q3 Stalls: Earnings And Sales Miss Street View As CDK Outage Takes A Toll originally appeared on Benzinga.com
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