AutoNation Inc. Q3 Earnings Report

FORT LAUDERDALE, Fla. – AutoNation Inc. (NYSE:AN) reported third quarter earnings that fell short of analyst expectations, resulting in a 5% drop 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 expected $6.77 billion.

AutoNation's results were negatively affected by the lingering effects of 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 challenges due to weather and stop-sale orders from automakers.

CEO Mike Manley stated, “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.”

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 highlight, 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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