A disappointing revenue report for the second quarter from AutoNation ( NYSE: AN ) sent shares sliding in early trading on Thursday.
The major auto retailer topped EPS estimates by $0.19 for the second quarter, posting an all-time record EPS figure .
However, a 1.6% drop in revenue came up $100M short of analyst consensus. Driving the top line miss, new vehicle sales fell 14% from 2021, outpacing the 13% jump in used car revenue. Supply chain problems have been a persistent headwind across the auto industry, impacting new vehicle sales in particular.
Shares of the the major auto retailer slipped 2.8% in premarket trading, adding to losses marked on Wednesday after similar concerns on auto sales reported by Lithia Motors .
Still, CEO Mike Manley placed emphasis on the improving profit dynamics for the automaker.
"I am particularly pleased with our After-Sales penetration with gross profit increasing 11% compared to last year,” he said in a statement on Thursday. “This is a key profit driver that has been a particular area of focus since my arrival and that has been structurally embedded in the organization.”
Elsewhere, the company announced the acquisition of auto lender CIG Financial.
“This acquisition addresses a key strategic next step in the evolution and expansion of our customer relationships, particularly for our used vehicle business," Manley said.
Read more on the results from key peer Lithia .
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AutoNation stock skids after new vehicle sales slump in second quarter