The company’s adjusted earnings hit $5.11 per share, narrowly clearing the $5.08 consensus estimate tracked by FactSet. Revenue performance mirrored this resilience, dipping only slightly to $7.01 billion from $7.04 billion a year prior, which still managed to exceed analyst projections of $6.9 billion. Investors reacted positively to the results, driving shares up 2.8% to $174 in premarket trading.
In section Market Quotes
AutoNation Profit Slips as Vehicle Sales Cool
A sharp 5% decline in new vehicle retail sales pushed AutoNation’s third-quarter profit down to $162.3 million, a notable retreat from the $215.1 million reported during the same period last year. Despite the softening demand, the retailer outperformed Wall Street expectations, bolstered by a fresh $1 billion stock buyback authorization.
Underlying metrics reveal a broader struggle within the dealership sector. Same-store revenue fell 2% as consumers grappled with the compounding pressures of high interest rates and elevated vehicle pricing. Used vehicle sales proved even more sluggish, recording a 6% decline. In response to these headwinds, the board moved to shore up shareholder value by greenlighting an additional $1 billion for stock repurchases.
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