AutoNation announced on Monday that its second-quarter earnings are expected to be lower than anticipated due to the recent cyberattacks on CDK Global.
The company projects profits to be roughly $1.50 less per share than previously forecasted, as reported by Bloomberg.
The car retailer, one of the largest in the United States, experienced a decline in its shares during the two-week outage of the CDK dealership system that began on June 19.
AutoNation’s stock has mostly rebounded since the system was largely restored by the July 4th weekend.
The company assured that the outage should not affect its overall financial health. Its shares went up by 5.40 points to 175.88 by 11 a.m. on Monday.
Other companies are also feeling the impact of the outage. Sonic Automotive, another car dealership firm, mentioned last week that the cyberattacks will have a “material impact” on its earnings, according to AutoNews.
The cyberattack disrupted business for approximately 15,000 dealerships working with CDK. CNN reported that CDK may have paid a $25 million ransom to regain control of its systems, although the company has not confirmed this publicly.