AutoNation Stock Dips Even After the Car Seller Grows Every Sales Segment

The car retailer’s same-store revenue increased 8% in the second quarter. (Courtesy of AutoNation)

AutoNation stock was down Friday even after the car retailer reported better-than-expected adjusted earnings and revenue for the second quarter.

The company posted adjusted earnings of $5.46 a share, a jump from $3.99 last year and above analysts’ consensus call for $4.70. Revenue totaled $6.97 billion for the quarter, surpassing Wall Street’s forecast of $6.86 billion. Same-store revenue increased 8% from the prior year, and sales of new vehicles increased to 65,334 units from 60,608 units.

AutoNation stock was down 0.1% in Friday afternoon trading. Shares had climbed 18% in 2025 as of Thursday’s close.

“We are pleased to report another quarter of strong performance, with robust growth across the entire business,” said CEO Mike Manley.

Revenue across each of AutoNation’s domestic, imported, and premium luxury segments increased year over year. The company also reported growth in its AutoNation Finance financing business, which completed its first asset-backed securitization during the quarter, generating $700 million to fund its car loan portfolio.

The company did, however, record a goodwill impairment of $65.3 million related to its mobile repair service business and a franchise rights impairment of $71.7 million in the second quarter, which weighed on operating income. Net income declined 34% year-over-year before accounting adjustments.

Manley admitted in a conference call that it has been difficult to get the mobile service business running efficiently.

“It’s going to have a different growth profile than our original expectation, hence the technical accounting treatment,” Manley said. “But I do want to be clear, I have no doubt this business has the potential to bring significant benefits to our organization.”

Write to Nate Wolf at nate.wolf@barrons.com