AutoNation Slashes Guidance on CDK Global Cyberattack
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Key TakeawaysAutoNation lowered its second-quarter EPS guidance by about $1.50 per share.CDK Global, which provides software to car dealerships, was hit by a cyberattack in June.AutoNation said it has restored access to its dealer management system and core functions but that “certain ancillary systems” are still sidelined.
AutoNation (AN) has cut its quarterly earnings guidance in the wake of a cyberattack on software provider CDK Global last month, the company said Monday in Securities and Exchange Commission (SEC) filing.CDK provides software to roughly 15,000 car dealerships, including AutoNation locations. Due to disruption from the attack, AutoNation slashed its second-quarter earnings per share (EPS) guidance by approximately $1.50 to a range of $3.15 to $3.30. That figure doesn't take into account any potential recoveries related to the incident, the company said. 'Certain Ancillary Systems' Still SidelinedAutoNation said it has restored access to its dealer management system and core functions but that “certain ancillary systems” are still sidelined. The company expects to finish restoring all systems by the end of July. "While the full scope, nature, and impact of the incident is yet to be known, we do not expect the incident to have a material impact on AutoNation's overall financial condition or on its ongoing results of operations," the company said. AutoNation shares rose more than 3% to $176.16 as of about 12:30 p.m. ET Monday despite the downward revision. They are up about 17% this year. Read the original article on Investopedia.
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