Why AutoNation Shares Are Falling Today?
Portfolio Pulse from Nabaparna Bhattacharya
AutoNation, Inc. (NYSE:AN) shares fell by 2.8% after reporting Q4 results. Despite beating EPS and revenue expectations with $5.02 EPS and $6.767 billion in revenue, the company saw a 5% decrease in gross profit from the previous year. New vehicle sales increased by 8%, but used vehicle sales dropped by 4%. CEO Mike Manley expressed confidence in the company's strong balance sheet and operating plan for 2024. AutoNation reported $1.5 billion in liquidity as of December 31, 2023.
February 13, 2024 | 5:25 pm
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AutoNation shares fell 2.8% after Q4 earnings report showed a decrease in gross profit despite beating EPS and revenue forecasts. New vehicle sales rose, but used vehicle sales declined.
The drop in AutoNation's share price can be attributed to the decrease in gross profit reported in their Q4 earnings, despite beating EPS and revenue expectations. The mixed results in vehicle sales, with new vehicle sales increasing but used vehicle sales declining, may also contribute to investor concerns about future profitability.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100