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NEW YORK (TheStreet) -- Shares of AutoNation (AN) - Get AutoNation, Inc. Report closed down on heavy trading volume on Friday after the company reported weaker-than-expected results for the 2016 third quarter.

Before today's opening bell, the Fort Lauderdale, FL-based car retailer posted earnings of $1.05 per share, missing analysts' estimates of $1.15 per share. Revenue of $5.57 billion was below Wall Street's forecasts of $5.61 billion.

The company said that its third-quarter results were negatively impacted by recent recalls of Takata's defective airbags.

Additionally, AutoNation plans to spend at least $500 million over the next several years to expand its business into used-vehicle stores, branded parts and service and collisions operations.

The company has already identified 25 potential locations for new used-vehicle stores and plans to open five next year.

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The move would put AutoNation in direct competition with used-car retailer CarMax (KMX), Reuters reports.

About 2.45 million shares of AutoNation traded today vs. the 30-day average volume of about 801,100 shares.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.

The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins.

You can view the full analysis from the report here: AN

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