Shares of automotive retailer AutoNation (NYSE:AN) are trending lower today after the company announced second-quarter numbers. Revenue inched up 0.4% year-over-year to $6.9 billion, outperforming estimates by $120 million. EPS at $6.29 too came in ahead of expectations by $0.38.
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While new vehicle retail unit sales increased by 8% to 62,444, used vehicle retail unit sales declined by 11% to 68,812. The drop in used vehicle volume translated into a 17% decrease in used vehicle revenue to $2.1 billion. Additionally, despite the uptick in new vehicle volume, gross profit from the vertical decreased by $66 million during this period.
The company is continuing to expand its footprint while experiencing lower segment income across domestic, import, and premium luxury segments during the quarter.
Overall, the Street has a $184.80 consensus price target on AutoNation alongside a Moderate Buy consensus rating. While shares of the company have surged nearly 45% over the past year, short interest in the stock still remains elevated at nearly 15.8%.
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