© Reuters. Vehicles for sale are pictured on the lot at AutoNation Toyota dealership in Cerritos

(Reuters) – AutoNation Inc (NYSE:) 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 $92.9 million, or $1.02 per share, for the fourth quarter ended Dec. 31, from $151.5 million, or $1.64 per share, a year earlier, when it had a $41 million benefit related to changes in the U.S. tax reform.

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

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

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

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

2019-02-22