AutoNation, Inc. (NYSE: AN ) stock was down on Friday following the release of its earnings report for the third quarter of 2016.
Earnings per share reported by AutoNation, Inc. in the third quarter of 2016 was $1.05. This is flat when compared to earnings per share from the third quarter of 2015. Analysts' estimates had the automotive retailer reporting earnings per share of $1.15 in the third quarter of 2016.
Net income reported by AutoNation, Inc. was $108 million in the third quarter of 2016. This is down from the $119 million in net income reported during the same time last year.
AutoNation, Inc. notes that the Takata airbag recall hurt net income by $6 million, after taxes. It also had a 6-cent negative effect on the company's earnings per share for the quarter. 14% of the company's used inventory was on hold during the quarter due to the recall.
"Certain manufacturers continued disruptive marketing and sales incentives, which resulted in multi-tier pricing and were unfair for consumers as well as retailers," Mike Jackson, Chairman, President and CEO of AutoNation, Inc., said in a statement . "In the third quarter, these incentives had a significant negative impact on new vehicle volume and gross profit per new vehicle retailed."
AN stock was down 3% as of Friday morning and 25% year-to-date.
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