AutoNation Reports Q2 Earnings Miss: 'An Otherwise Strong Quarter For AutoNation Was Masked By The CDK Outage'
Portfolio Pulse from Nabaparna Bhattacharya
AutoNation, Inc. (NYSE:AN) reported Q2 earnings that missed analyst expectations due to a cyber incident at CDK Global. Despite the miss, the company showed strong cash flow and capital allocation, including significant share repurchases. AN shares rose 6.78% following the report.
July 31, 2024 | 3:00 pm
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AutoNation reported Q2 earnings per share of $3.99, missing the consensus of $4.34, and sales of $6.48 billion, missing the consensus of $6.72 billion. The miss was due to a cyber incident at CDK Global, which reduced EPS by $1.55. Despite this, AN shares rose 6.78% due to strong cash flow and capital allocation.
The earnings miss was significant, but the market reacted positively due to strong cash flow, capital allocation, and share repurchases. This indicates investor confidence in the company's long-term strategy.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100