AutoNation misses profit, revenue estimates; names new CEO

AutoNation misses profit, revenue estimates; names new CEO

AutoNation Inc, the largest U.S. auto retail chain, said on Friday Carl Liebert will succeed longtime Chief Executive Officer Mike Jackson.

Vehicles for sale are pictured on the lot at AutoNation Toyota dealership in Cerritos
Vehicles for sale are pictured on the lot at AutoNation Toyota dealership in Cerritos, California December 9, 2015. REUTERS/Mario Anzuoni

REUTERS: AutoNation Inc reported lower-than-expected quarterly profit and revenue on Friday, as the largest U.S. auto retailer sold fewer new vehicles, and the company named a new chief executive officer.

The tepid sales and the change of guard come against the backdrop of a likely drop in sales of new vehicles in the United States this year as higher interest rates and rising prices may prompt customers to delay their buying plans.

Auto sales in 2018 had benefited from President Donald Trump's overhaul of the U.S. tax laws that put more money in the hands of consumers.

AutoNation's net income from continuing operations fell to US$92.9 million, or US$1.02 per share, for the fourth quarter ended Dec. 31, from US$151.5 million, or US$1.64 per share, a year earlier, when it had a US$41 million benefit related to changes in the U.S. tax reform.

Analysts on average expected the company to earn US$1.14 per share, according to IBES data from Refinitiv.

Revenue fell to US$5.41 billion from US$5.68 billion, largely missing analysts' estimates of US$5.63 billion.

The company said revenue from new vehicle sales declined 8.3 percent to US$3.07 billion.

(Reporting by Rama Venkat in Bengaluru; Editing by James Emmanuel)

Source: Reuters

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