AutoNation announced on Monday that its second-quarter earnings are expected to be lower than initially projected due to last month’s cyberattacks on CDK Global.
The company anticipates profits to be approximately $1.50 less per share compared to prior estimates, according to a report by Bloomberg.
The car retailer, one of the largest in the nation, experienced a decline in its shares during the CDK dealership system outage, which lasted around two weeks starting June 19.
Despite this setback, AutoNation’s stock has mostly recovered since the system was largely restored by the July 4th weekend. On Monday morning, the company’s shares rose by 5.40 points, reaching 175.88 by 11 a.m.
AutoNation stated that the outage would not impact its overall financial stability.
Meanwhile, Sonic Automotive, another car dealership company, reported last week that the cyberattacks would significantly affect its earnings, as per AutoNews.
The cyberattack caused significant disruptions for the approximately 15,000 dealerships relying on CDK. CNN reported that CDK might have paid a $25 million ransom to regain control of its systems from hackers, though the company has not confirmed this publicly.