Sumary of 4 Ways AutoNation Is Hitting the Accelerator in Mid-2021:
- 1. AutoNation is growing fast and successfully “Nothing succeeds like success,” according to the old saying, and AutoNation’s most recent quarterly metrics offer proof of its business model being able to generate outstanding results.
- Making good use of current opportunities, it posted double-digit gains over both Q2 2020 and Q2 2019, with its press release highlighting how the rise in revenue and earnings per share (EPS) isn’t just rebounding from 2020’s COVID-19 trough, but is sustained, swiftly increasing growth continuing from the pre-pandemic days.
- AutoNation’s robust used car channel is likely to prove its worth in the coming months, with the new car shortfall reportedly causing a 14% drop in sales over the entire market in June, Black Book data reported by Yahoo!
- With new cars scarce, pre-owned vehicles are now commanding premium prices, up an average of 30% since 2020’s beginning, according to Edmunds.
- Some used cars are selling for more than their original showroom sticker price when new, Jalopnik writes, with Kia Tellurides at the top with prices 8.1% higher.
- The company states it expects the current buying frenzy to continue at least into 2022. 3. It’s developing the digital side of its business While it obviously can’t dispense with physical showrooms, AutoNation is using “digitalization” to speed up a number of processes in its business, according to Jackson.
- 4. It’s investing in making its operations stronger Underlying AutoNation’s impressive EPS metrics is another factor besides plain cost-cutting: An active share buyback program.