AutoNation, Inc. (NYSE: AN), the largest automotive retailer in the United States, reported weaker financial results for the third quarter of 2024, reflecting a challenging environment for the auto industry.
The company's net income declined 24% year-over-year to $185.8 million, or $4.61 per share, missing analysts' expectations of $4.48 per share. Revenue decreased by 4.4% to $6.59 billion, falling short of the estimated $6.73 billion.
AutoNation's results were impacted by several factors, including lower average selling prices for new and used vehicles, as well as a decline in overall unit sales. The company cited lingering effects from the CDK software outage earlier in the year, weather challenges, and manufacturer stop-sale orders as contributing factors.
Despite the challenges, AutoNation reported solid performance in its After-Sales segment, which includes parts and service operations. After-Sales gross profit increased by 2% to $558 million, driven by higher revenue and improved margins.
Mike Manley, AutoNation's Chief Executive Officer, acknowledged the difficult environment but expressed optimism for the remainder of the year. "We were able to navigate through a challenging environment, which included the lingering effects of the CDK outage, weather challenges, and OEM stop-sale orders," Manley said. "Looking ahead, we remain focused on shareholder returns, are encouraged by the moderating interest rates and OEM support actions, and are committed to delivering a strong close to the year."
Comments