NEW YORK (TheStreet) -- Shares of AutoNation Inc. (AN) are down -6.36% to $56.98 after it reported second quarter net income from continuing operations of 83 cents per share, versus the average estimate of analysts surveyed by Reuters of 87 cents per share.
Revenue was $4.79 billion, in line with analysts expectations, and up 8% from a year ago.
Mike Jackson, CEO of the largest U.S. auto dealer group, said on CNBC Thursday morning, Wall Street analysts underestimated the amount of investment the company spent in the quarter on its online presence.
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Separately, TheStreet Ratings team rates AUTONATION INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AUTONATION INC (AN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.