AutoNation ( NYSE: AN ) shares shifted into reverse on Thursday after profits came up short of analyst expectations.
For the third quarter, a report of $6.00 in earnings per share came in about $0.27 below the bar, overshadowing a narrow top-line beat led by a modest jump in new vehicle sales. SG&A expenses rose to 58.1% of gross profits in the quarter as a result of increased tech investments.
"Inventory in the industry remains constrained and retail sales of new and used vehicles remain well below historical levels. In this environment, our Associates continue to drive strong results, while focused on providing a superior Customer experience,” CEO Mike Manley commented. “Their efforts increased After-Sales gross profit and delivered record Customer Financial Services gross profit per vehicle retailed.”
AutoNation ( AN ) shares fell 4.3% shortly after the print.
Elsewhere, the company announced the authorization of a $1B buyback program. The company repurchased $428M worth of common stock in the third quarter.
Read more on JP Morgan’s assessment of auto dealer stocks .
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AutoNation shares edge lower after profits miss the mark