(Reuters) -Auto retailer AutoNation Inc (NYSE:AN) on Thursday missed Wall Street estimates for first-quarter revenue as higher new vehicle and after-sales demand was offset by weakness in used vehicle and customer financial service businesses.
The company benefited over the past few years from people investing in new vehicles and maintenance-related services, but lost some of that traction on affordability concerns from higher fuel prices and interest rates.
Rival Lithia Motors (NYSE:LAD), which last year became the largest U.S. auto dealer group by sales volume, also fell short of Wall Street estimates earlier in the week.
Sales at the AutoNation unit that sells new vehicles rose to $2.93 billion from $2.81 billion a year earlier. Used vehicle revenue decreased 21%.
Total sales, however, fell to about $6.4 billion, compared with Refinitiv estimates of $6.63 billion.
Net income fell to $288.7 million, or $6.07 per share, in the first quarter ended March 31, from $362.1 million, or $5.78 per share, a year earlier.
On a per share basis, earnings rose as the company repurchased 2.4 million shares during the quarter.
The company's shares were down nearly 1% at $135 in premarket trade.