AutoNation Slashes Guidance on CDK Global Cyberattack

Core Insights - AutoNation has lowered its second-quarter EPS guidance by approximately $1.50 per share due to a cyberattack on CDK Global, a software provider for car dealerships [1][2] - The revised EPS guidance is now projected to be in the range of $3.15 to $3.30, excluding any potential recoveries related to the cyber incident [1] - AutoNation has restored access to its dealer management system and core functions, but certain ancillary systems remain sidelined, with full restoration expected by the end of July [2] Financial Impact - The cyberattack on CDK Global, which services around 15,000 car dealerships including AutoNation, has led to the earnings guidance revision [1] - Despite the downward revision, AutoNation's shares increased by over 3% to $176.16, reflecting a year-to-date increase of approximately 17% [2] Operational Status - AutoNation has indicated that while the full impact of the cyberattack is still being assessed, it does not expect a material effect on its overall financial condition or ongoing operational results [2]