Asbury Q4 Earnings & Sales Outperform Expectations, Rise Y/Y

Core Insights - Asbury Automotive (ABG) reported fourth-quarter 2024 adjusted earnings per share of $7.26, exceeding the Zacks Consensus Estimate of $6.07 and increasing from $7.12 in the previous year [1] - Total revenues for the quarter reached $4.5 billion, an 18% year-over-year increase, surpassing the Zacks Consensus Estimate of $4.13 billion [1] Segment Performance - New vehicle revenues increased by 19% year over year to $2.45 billion, beating the Zacks Consensus Estimate of $2.18 billion, driven by higher units sold and better pricing [3] - Retail units sold in the new vehicle segment totaled 47,255, an 18% increase year over year, exceeding the consensus estimate of 42,938 units [3] - Used vehicle retail revenues rose 14% year over year to $1.1 billion, surpassing the Zacks Consensus Estimate of $957 million [4] - Retail used vehicle units sold totaled 35,328, a 15% increase year over year, outpacing the consensus mark of 33,574 units [4] - Revenues from the used vehicle wholesale business jumped 55% to $160 million, exceeding the consensus estimate of $138 million [5] - Net revenues from the finance and insurance business amounted to $198.5 million, a 16% increase from the previous year, beating the Zacks Consensus Estimate of $189 million [6] - Revenues from the parts and service business rose 15% year over year to $590.4 million but missed the Zacks Consensus Estimate of $599 million [7] Financial Metrics - Gross profit from new vehicles was $172.1 million, up 1% year over year, surpassing the Zacks Consensus Estimate of $145 million [3] - Gross profit from used vehicles was $51.2 million, down 2% year over year, but exceeded the Zacks Consensus Estimate of $49.1 million [4] - Gross profit from the finance and insurance segment rose 13% year over year to $184.6 million, exceeding the Zacks Consensus Estimate of $170 million [6] - Selling, general & administrative expenses as a percentage of gross profit increased to 63.6%, up 208 basis points year over year [8] Share Repurchase and Cash Position - In full-year 2024, ABG repurchased 830,000 shares for $183 million, with $276 million remaining under its share repurchase authorization as of December 31, 2024 [9] - As of December 31, 2024, the company had cash and cash equivalents of $69.4 million, up from $45.7 million as of December 31, 2023 [8] - Long-term debt decreased to $3.14 billion as of December 31, 2024, down from $3.2 billion as of December 31, 2023 [8]