AutoNation's Quarterly Revenue Tops Views on After-Sales Growth

01:12 PM EDT, 10/30/2026 (MT Newswires) -- AutoNation's (AN) third-quarter revenue topped Wall Street's projections as gains in its after-sales business helped offset soft new vehicle sales, sending its shares higher on Friday. The automotive retailer's September-quarter revenue slipped to $7.01 billion from $7.04 billion a year earlier, but surpassed the FactSet-polled consensus of $6.93 billion. Adjusted per-share earnings rose to $5.11 from $5.01, while analysts expected $5.08. The stock was up 5.3% intraday, trimming its year-to-date losses to 14%. Revenue from the parts and service business, which represents the after-sales segment, rose 5.2% to $1.29 billion. New vehicle revenue fell 2.5% year over year to $3.33 billion, while used vehicle sales rose 1% to $2.04 billion. "Vehicle volumes were lower year over year, primarily reflecting the comparison with demand ahead of the September 2025 (electric vehicle) incentive expiration and last year's tariff announcements," Chief Financial Officer Thomas Szlosek said during an earnings conference call, according to a FactSet transcript said. "This is behind us as we move forward, but it did create a $0.52 per share unfavorable impact in the quarter." After-sales and AutoNation Finance contributed $0.38 and $0.27 to EPS growth, respectively, Szlosek told analysts. The results also benefited from the company's share repurchase activities, Chief Executive Mike Manley said on the call. Last month, AutoNation rival CarMax (KMX) reported stronger-than-expected fiscal second-quarter revenue buoyed by a double-digit increase in comparable used-vehicle sales amid early momentum in the company's growth plan. Late Wednesday, Carvana (CVNA) said it is poised for a "strong finish" to 2026 following its third-quarter performance. UBS Securities recently said that a modest increase in interest rates is unlikely to dampen auto demand, though it could still hurt dealers in particular due to their floating debt structure. Last month, the Federal Reserve raised interest rates by 25 basis points to cool inflation, which marked the US central bank's first rate hike in just over three years. It kept interest rates steady this week, but is widely anticipated to hike again in December. The auto financing businesses of AutoNation, CarMax and Lithia Motors (LAD) have floating and refinancing debt components, UBS said in a note earlier this month. Price: 178.27, Change: +8.92, Percent Change: +5.27