Autonation Beats Estimates

AutoNation Inc ($AN@US) reported a better-than-expected quarterly profit on Thursday after benefiting from higher vehicle prices and tightening inventories. The firm also announced a $1 billion share buyback scheme. The COVID-19 pandemic pushed Americans to purchase more cars, opting for personal transportation over public transit like trains and buses. AutoNation’s used car revenue rose 53% while new car revenue ticked up slightly. Analysts expected the firm to report earnings per share at $4.20 while AutoNation beat expectations with an adjusted net income of $5.12 per share. AutoNation stock rose nearly one and half percent in early trading.