AutoNation CEO: 'Fourth Quarter Was Our Best Quarter Ever'

AutoNation, Inc. AN came out with better-than-expected fourth-quarter earnings on Tuesday. The company posted revenues of $5.05 billion and EPS $1.02 versus analysts expectations of $4.9 billion and $0.92, respectively.

Mike Jackson, AutoNation chairman & CEO, was on CNBC after the result declaration to break down the quarterly numbers and opine on expected auto sales.

Related Link: Edmunds.com Analyst: Auto Sales Can't Continue To Grow In This Way

Outstanding Quarter

"The fourth quarter was our best quarter ever," Jackson said. "$1.02 earnings per share up 23 percent and that is our 17th quarter in a row of double-digit gains. And for the full year last year $3.49, 17 percent, our best year ever."

"And as far as January’s number...for AutoNation, we were up 20 percent. The only thing additional that I would add is the comparison is very easy if you recall January and February last year were very poor for auto sales."

He continued, "Absolutely flat in the month of January. A selling rate of only 15/2, and everybody back then was scratching their heads as to whether the economy was really slowing down. And I think GDP for the first quarter last year was flat, if not down."

"So, the comparison is easy, but the message is clear: the auto industry is off and running to breakthrough 17 million unit sales this year. And I think you will see strong reports from all the manufacturers today."

Were Black Friday Ads Effective In Boosting The Numbers?

"Well the period from Black Friday through the end of the year is just about one of the strongest selling periods of the entire year for auto sales," Jackson replied. "And every manufacturer becomes a symbiotic relationship. It's there with all kinds of programs and incentives to make sure they get their piece of the pie because, the customers are expected and they are in the marketplace."

"But I’ll have to say, overall, the levels of incentives are very reasonable. To be expected. I don’t see anybody doing anything extreme that’s not sustainable."