Shares of AutoNation Inc. (AN) were falling Friday morning after the company missed Wall Street's earnings estimates. The automotive retailer also announced it had named a new CEO to replace Mike Jackson, who's stepping down.
The stock was down 5.97% to $36.06 in early trading.
AutoNation missed earnings-per-share estimates, posting $1.02 in the fourth quarter of 2018, against Wall Street's estimates of $1.15. Revenue was $5.4 billion, missing analysts expectations of $5.63 billion. EPS fell 37% year-over-year while revenue fell 8.3% year-over-year.
AutoNation previously announced a cost savings plan and a corporate restructuring to reduce costs and increase efficiency. The cost reductions are expected to total $50 million for each year of the plan. The company will incur restructuring costs in the first quarter of 2019.
The company also announced Carl Liebert will replace Mike Jackson as CEO. Jackson had held the position since 1999 and will remain Chairman of the Board of Directors until 2021. Liebert had been the chief operating officer of USAA, an insurance and investments firm serving primarily U.S. veterans. He was in charge of international strategy and company operations.
Four executives left the company in January as a part of the restructuring.
AutoNation's stock is down 26% in the past year.