AutoNation Stock Slips After Earnings Miss

AutoNation (NYSE:AN) is a Florida-based company that operates as an automotive dealer through its subsidiaries. Shares of AutoNation have dropped 12% month-over-month as of close on Friday, October 25, 2024. Meanwhile, its stock is still up 3.4% in the year-to-date period.

This company unveiled its third quarter (Q3) fiscal 2024 before markets opened on Friday, October 25. In the report, AutoNation stated that the results were “adversely impacted by the residual effects of the CDK outage in July”. That, according to the report, reduced its earnings per share by an estimated $0.21 per share.

For Q3 FY2024, AutoNation reported total revenue of $6.58 billion – down 4% compared to total revenue of $6.89 billion in the prior year. Moreover, gross profit fell 9% year-over-year to $1.18 billion. The company reported adjusted net operating income of $320 million, adjusted net income of $162 million, and adjusted earnings per share (EPS) of $4.02 – down 23%, 33%, and 27%, respectively, compared to the previous year.

In the year-to-date period, AutoNation reported total revenues of $19.5 billion – down 3% compared to the prior year. However, new vehicle retail sales were up 2% to 183,281. Meanwhile, used vehicle retail unit sales dropped 4% year-over-year to 201,079.

Shares of AutoNation stock currently possess a price-to-earnings ratio of 8.9. That puts this stock in favourable value territory at the time of this writing.