UPDATE: AutoNation Posts Downbeat Q2 Earnings, Shares Fall

Shares of AutoNation

tumbled more than 4.5% in pre-market trading after the company reported weaker-than-expected earnings for the second quarter. The Fort Lauderdale, Florida-based company posted a quarterly net profit of $101 million, or $0.83 per share, versus a year-ago profit of $90 million, or $0.73 per share. Its revenue climbed 8% to $4.79 billion. However, analysts were expecting earnings of $0.86 per share on revenue of $4.78 billion. AutoNation's new vehicle unit sales gained 8% overall, and rose 6% on a same-store basis. Domestic segment income(surged 7% to $71 million, while import segment income gained 6% to $78 million. Premium Luxury segment income surged 13% to $86 million. Mike Jackson, Chairman and Chief Executive Officer, said, "AutoNation delivered its 15th consecutive quarter of double-digit year-over-year growth in EPS. We reconfirm our expectation of U.S. industry new vehicle unit sales to increase 3% to 5%, bringing U.S. industry new vehicle sales above 16 million units in 2014." AutoNation shares dropped 4.51% to $56.26 in pre-market trading.