AutoNation Inc.'s stock AN fell 5% early Friday, after the new and used-car retailer's third-quarter earnings missed estimates amid continued fallout from a software outage. Fort Lauderdale, Fla.-based AutoNation had net income of $185.8 million, or $4.61 a share, for the quarter, down from $243.7 million, or $5.54 a share, in the year-earlier period. Adjusted for one-time items, the company had EPS of $4.02, below the $4.36 FactSet consensus. Revenue fell 4% to $6.586 billion from $6.893 billion a year ago, also below the $6.695 billion FactSet consensus. Earnings were hit by the cyberattack at dealership-software company CDK Global that created disruption for car sellers across the U.S. over the summer. The incident shaved an estimated 21 cents off EPS, said AutoNation. "We were able to navigate through a challenging environment, which included the lingering effects of the CDK outage, which we are relieved to now have behind us, weather challenges, and OEM stop-sale orders," Chief Executive Mike Manley said in prepared remarks. The stock is up 8.7% in the year to date, while the S&P 500 SPX has gained 21.8%.
AutoNation's stock falls 5% after earnings fall short of estimates
By Ciara Linnane