AutoNation announced on Monday that its second-quarter earnings are expected to be lower than previously anticipated due to last month’s cyberattacks on CDK Global.
The company now projects profits to be about $1.50 less per share than earlier forecasts, as reported by Bloomberg.
AutoNation, one of the largest car retailers in the country, experienced a decline in its share value during the two-week outage affecting the CDK dealership system starting on June 19.
While the company’s stock has mostly rebounded since the outage resolution around the July 4th weekend, AutoNation confirmed that the incident should not impact its overall financial stability. By 11 a.m. Monday, shares had increased by 5.40 points to 175.88.
AutoNation is not alone in facing repercussions from the cyberattack. Sonic Automotive, another car dealership company, indicated last week that the attacks would have a “material impact” on its earnings, according to AutoNews.
Approximately 15,000 dealerships using CDK were nearly forced to halt operations due to the attack. CNN reported that CDK may have paid a $25 million ransom to hackers to restore their system, though the company has not confirmed this payment publicly.