AutoNation stock skids after new vehicle sales slump in second quarter (NYSE:AN)

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AutoNation Reports Quarterly Earnings

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A disappointing income report for the 2nd quarter from AutoNation (NYSE:AN) sent shares sliding in early investing on Thursday.

The key car retailer topped EPS estimates by $.19 for the 2nd quarter, publishing an all-time record EPS figure.

Having said that, a 1.6% fall in income arrived up $100M quick of analyst consensus. Driving the best line miss, new auto profits fell 14% from 2021, outpacing the 13% leap in utilized car income. Source chain difficulties have been a persistent headwind throughout the vehicle business, impacting new auto profits in specific.

Shares of the the key vehicle retailer slipped 2.8% in premarket buying and selling, incorporating to losses marked on Wednesday following identical concerns on vehicle product sales described by Lithia Motors.

Nonetheless, CEO Mike Manley positioned emphasis on the bettering gain dynamics for the automaker.

“I am especially pleased with our Immediately after-Sales penetration with gross income growing 11% in comparison to last year,” he said in a statement on Thursday. “This is a essential gain driver that has been a certain area of concentration because my arrival and that has been structurally embedded in the organization.”

In other places, the firm introduced the acquisition of automobile loan company CIG Financial.

“This acquisition addresses a essential strategic up coming move in the evolution and expansion of our consumer associations, especially for our applied motor vehicle company,” Manley claimed.

Examine much more on the effects from key peer Lithia.

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