AutoNation (AN 40.46, -1.51) has slid 3.6% in pre-market after missing second quarter estimates.
The automotive retailer reported below-consensus second quarter earnings of $0.86 on a 3.0% year-over-year decline in revenue to $5.28 billion, which was also shy of expectations.
On a same-store basis, vehicle sales declined 2.0% due to challenging market conditions in Texas and Florida—two of the company's largest markets that make up nearly 45.0% of the company's total unit sales. Same-store sales in Florida and Texas fell 6.0% while industry retail new vehicle unit sales in the two states fell 5.0%, according to JD Power.
In the Domestic segment, income declined 30.0% year-over-year to $60 million while Import income was unchanged at $75 million. Premium Luxury income decreased 10.0% year-over-year to $84 million. Through the first six months of 2017, Domestic segment income has declined 25.0% year-over-year to $122 million, Import segment income has dropped 2.0% to $147 million, and Premium Luxury segment income has fallen 7.0% to $164 million.
Taking a glance at the second quarter brand mix, sales of Ford and Lincoln vehicles fell to 13.2% of total sales from 14.9% one year ago. Toyota sales made up 19.0% of the second quarter total, up from 17.4% one year ago.
AutoNation's results come just a day after it was reported that July auto sales declined 6.4% year-over-year to 16.73 million units. That said, July sales represented a modest improvement from June's total of 16.51 million, which was the lowest monthly tally since April 2015. In addition to reporting earnings, AutoNation announced that it has acquired Alpine Jaguar in Ft. Lauderdale, FL. The company expects $68 million of annual revenue from the acquisition.
In addition, the company was awarded a Jaguar Land Rover add-point in Delray Beach, FL, expecting $130 million in annual revenue from the operation.