AutoNation (AN) shares tumbled 5.43% in pre-market trading Friday after the auto retailer reported second-quarter results that showed a mixed performance, with earnings beating expectations but revenue falling short of analyst forecasts.

The company posted adjusted earnings per share of $5.56, surpassing 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.

Investors reacted negatively to the top-line miss, overshadowing the earnings beat and sending the stock sharply lower in pre-market action. The decline in new-vehicle sales underscores ongoing headwinds in the auto retail sector, even as the company managed to improve profitability on an adjusted basis.