AutoNation Inc.'s third-quarter net income rose on gains in the company's parts and service, used-vehicle and finance and insurance businesses, despite a decline in new-vehicle gross profit. The dealership group also announced a $50 million strategic investment in online used-car retailer Vroom Inc.
Net income increased 15 percent to $112 million in the quarter, the company said Tuesday. Although that marks a significant boost from the year earlier, the comparison was helped by AutoNation's 9.1 percent dip in net income during the third quarter of 2017. The prior-year drop came after 2017's Hurricane Irma slashed the retailer's after-tax net income by $8 million.
Revenue in 2018's third quarter dipped 1.5 percent from the year earlier to $5.35 billion.
AutoNation shares were down 6.9 percent to $39.27 in mid-morning trading Tuesday.