AutoNation, Inc. (NYSE:AN) stock was down on Friday following the release of its earnings report for the third quarter of 2016.
AutoNation, Inc. reported revenue of $5.57 million billion for the third quarter of 2016. The company’s revenue from the same time in 2015 was $5.35 billion. Wall Street was expecting the company to report revenue of $5.61 billion for the third quarter of the year.
Earnings per share reported by AutoNation, Inc. in the third quarter of 2016 was $1.05. This is flat when compared to earnings per share from the third quarter of 2015. Analysts’ estimates had the automotive retailer reporting earnings per share of $1.15 in the third quarter of 2016.
Net income reported by AutoNation, Inc. was $108 million in the third quarter of 2016. This is down from the $119 million in net income reported during the same time last year.
AutoNation, Inc. notes that the Takata airbag recall hurt net income by $6 million, after taxes. It also had a 6-cent negative effect on the company’s earnings per share for the quarter. 14% of the company’s used inventory was on hold during the quarter due to the recall.
“Certain manufacturers continued disruptive marketing and sales incentives, which resulted in multi-tier pricing and were unfair for consumers as well as retailers,” Mike Jackson, Chairman, President and CEO of AutoNation, Inc., said in a statement. “In the third quarter, these incentives had a significant negative impact on new vehicle volume and gross profit per new vehicle retailed.”
AN stock was down 3% as of Friday morning and 25% year-to-date.
