Core Insights - AutoNation Inc. reported third-quarter earnings and revenue that exceeded Wall Street expectations, but shares fell over 2% due to concerns about tightening new vehicle margins [1] Financial Performance - Adjusted earnings per share were $5.01, surpassing analyst estimates of $4.84 [2] - Revenue increased by 7% year-over-year to $7.04 billion, exceeding expectations of $6.8 billion [2] - New vehicle gross profit decreased by $27 million, with per-unit profitability dropping to $2,290 from $2,820 a year earlier, despite a 4% increase in sales volume [2] Revenue Breakdown - Total same-store revenue rose 6% to $6.9 billion [3] - New vehicle sales increased by 7% to $3.4 billion [3] - Used vehicle revenue grew by 5% to $2.0 billion [3] - Customer Financial Services revenue climbed 11% to $368 million [3] - After-Sales revenue advanced 6% to $1.2 billion [3] Segment Performance - After-Sales unit showed strong results, with gross profit up 7% to $589 million and gross margin expanding by 100 basis points to 48.7% [4] - Customer Financial Services achieved a record gross profit of $375 million, a 12% increase from the prior year [4]