AutoNation tops earnings estimates, stock dips

Yahoo Finance's Brian Sozzi and Julie Hyman discuss quarterly earnings for AutoNation.

影片文字轉錄稿

JULIE HYMAN: We're going to talk about AutoNation, too, or at least mention AutoNation. That company's numbers actually beat estimates, adjusted earnings per share coming in at $5.78. But those shares are trading lower as well. You know, revenue also beat estimates. It was up 14% year over year. Not sure what's going on here with the decline. I don't know if you've had a more of a chance to dig into these numbers here. Maybe it's just sort of the spillover effect from a Carvana. I don't know. What's going on? Sozz, you know?

BRIAN SOZZI: Well, indeed, Julie. Yes, I'm glad you came to me because digging into this quarter, I think the market does not like, first of all, I will say on AutoNation, sales up 14% in an environment where you can't get new cars or used cars. That's pretty good, but I don't think the market likes gross profits down in their used car business. So used sales were up 47%. The gross profits on those cars were down 10%. Now, of course, car dealerships make bank on used cars, so perhaps AutoNation not making as much bank as it used to.