AutoNation Profit Falls as New-Vehicle Sales Decrease

Dow Jones10-30

AutoNation posted a slight decline in revenue and drop in profit after sales of new vehicles fell in the third quarter.

The auto retailer's board also approved a stock buyback plan for an additional $1 billion.

The company on Friday posted a profit of $162.3 million, or $4.87 a share, compared with $215.1 million, or $5.65 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $5.11, above analysts' estimates of $5.08 a share, according to FactSet.

Shares were recently up 2.8% at $174 in premarket trading Friday.

Revenue edged down to $7.01 billion from $7.04 billion a year earlier, but topped analysts' estimates of $6.9 billion.

Overall same-store revenue decreased 2% while same-store new vehicle retail sales dropped 5%. Same-store used vehicle retail sales were down 6%.

Higher interest rates and rising car costs have weighed on dealership demand across parts of the sector with consumers concerned about inflation and affordability.

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