AutoNation (AN) shares plummeted 8.28% in intraday trading, as investors reacted negatively to the company's second-quarter financial results, which showed a mixed performance. While adjusted earnings exceeded expectations, a top-line revenue miss and a decline in new-vehicle sales raised concerns about the auto retailer's growth trajectory.

The company reported adjusted earnings per share of $5.56, beating the consensus estimate of $5.50. However, revenue for the quarter came in at $6.93 billion, a 1% decline from the prior year and below the $7.02 billion analysts had projected. The revenue shortfall was primarily driven by a 3% drop in new-vehicle sales to $3.29 billion, while used-vehicle sales and parts and services revenue saw modest increases.

The decline in new-vehicle sales underscores ongoing headwinds in the auto retail sector, and the revenue miss overshadowed the earnings beat, leading to the sharp sell-off. The stock's negative reaction reflects market concerns over AutoNation's ability to sustain top-line growth amid a challenging sales environment.