Asbury Automotive Group (ABG) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the s ...

Core Viewpoint - Asbury Automotive Group has experienced mixed performance over the past year, with a 10% increase in stock price, and analysts are evaluating whether the current underperformance is justified or if there remains an opportunity for returns exceeding 15% [2] Financial Performance - In Q1, Asbury reported earnings of $7.21 per share on revenue of $4.2 billion, reflecting a 17% year-over-year revenue increase, driven by mergers and acquisitions [5] - Analysts project the company will earn $29.73 per share for the full year, surpassing the long-term estimate of $19 per share, leading to a fair value estimate of $260 [5] - Gross profit for the company was $750 million, an 8% increase, although gross margins declined by 158 basis points to 17.9% [6] Market Dynamics - Vehicle sales have historically not been the primary driver of the auto dealer business; maintenance and financing contribute significantly more to gross profit [7] - New vehicles accounted for 49% of revenue in Q1, generating $2.06 billion, but gross profit from new vehicles fell by 9% to $163 million due to margin contraction [7] - Used vehicles represented 32% of revenue at $1.36 billion, with gross profit declining by 7% to $72 million despite a 20% revenue increase [10] Inventory and Sales Trends - Asbury's new vehicle inventory has normalized to 54 days, up from 30 days a year ago, indicating a return to more typical market conditions [8] - Same-store new vehicle sales decreased by 1%, while revenue growth was primarily driven by M&A activities [7] - Maintenance services generated $590 million in revenue, accounting for 14% of total revenue and 45% of gross profit, with margins expanding to 56.6% [10] Cash Flow and Shareholder Returns - The company generated $209 million in operating cash flow and $183 million in free cash flow, with a share count reduction of 6% due to $50 million in share repurchases [10] - Asbury's leverage ratio stands at 2.6x, within its target range, and the company has a well-structured debt profile with no significant maturities until 2026 [11] Future Outlook - The company is expected to earn approximately $30 per share this year, trading at 8 times earnings, which is considered an attractive long-term valuation [13] - With ongoing growth in maintenance and stabilization in used car sales, Asbury is positioned for potential share price appreciation towards $300, based on projected earnings multiples [18]

Shares of Asbury Automotive (ABG) have inched down 1% since the company reported first-quarter 2024 results. Adjusted earnings of $7.21 per share decreased 13.8% year over year and missed the Zacks Consensus Estimate of $7.78 on lower-than-expected gross profit from new vehicle, parts and service, and finance and insurance businesses. In the reported quarter, revenues amounted to $4.2 billion, which increased 17% year over year but missed the Zacks Consensus Estimate of $4.26 billion.Segment DetailsIn the q ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☒ EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ☐ EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-31262 ASBURY AUTOMOTIVE GROUP, INC. (Exact name of Registrant as specified in its charter) Delaware 01-0609375 (State or ...

Asbury Automotive Group, Inc. (NYSE:ABG) Q1 2024 Earnings Conference Call April 25, 2024 10:00 AM ET Company Participants Chris Reeves - VP, Finance and Treasurer David Hult - President, CEO & Director Daniel Clara - SVP, Operations Michael Welch - SVP & CFO Conference Call Participants John Murphy - Bank of America Merrill Lynch Rajat Gupta - JPMorgan Chase & Co. Ryan Sigdahl - Craig-Hallum Capital Group Bret Jordan - Jefferies David Whiston - Morningstar Inc. Operator Greetings and welcome to the Asbury A ...

Asbury Automotive Group (ABG) reported $4.2 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 17.3%. EPS of $7.21 for the same period compares to $8.37 a year ago.The reported revenue represents a surprise of -1.56% over the Zacks Consensus Estimate of $4.27 billion. With the consensus EPS estimate being $7.78, the EPS surprise was -7.33%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wa ...

分组1 - Asbury Automotive Group reported quarterly earnings of $7.21 per share, missing the Zacks Consensus Estimate of $7.78 per share, and down from $8.37 per share a year ago, representing an earnings surprise of -7.33% [1] - The company posted revenues of $4.2 billion for the quarter, missing the Zacks Consensus Estimate by 1.56%, and an increase from $3.58 billion year-over-year [1] - Over the last four quarters, Asbury Automotive has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [1] 分组2 - The stock has underperformed, losing about 1.5% since the beginning of the year compared to the S&P 500's gain of 6.3% [2] - The current consensus EPS estimate for the coming quarter is $8.23 on revenues of $4.47 billion, and for the current fiscal year, it is $31.46 on revenues of $17.58 billion [4] - The Zacks Industry Rank for Automotive - Retail and Whole Sales is currently in the bottom 4% of over 250 Zacks industries, indicating potential challenges for stock performance [5]

Financial Performance - First quarter 2024 net income was $147 million, a decrease of 19% from $181 million in the same quarter of 2023[1] - Revenue reached $4.2 billion, an increase of 17% compared to the first quarter of 2023[5] - Operating margin decreased to 6.3%, down 146 basis points from the previous year[5] - Gross profit for the quarter was $750.0 million, reflecting an 8% increase from $696.2 million[21] - Net income decreased by 19% to $147.1 million, down from $181.4 million in the previous year[21] - Basic earnings per share were $7.24, a decline of 14% from $8.42[21] - Adjusted EBITDA for Q1 2024 was $258.6 million, compared to $293.7 million in Q1 2023, reflecting a decrease of 12%[35] - Income from operations for Q1 2024 was $243.3 million, a decrease of 5% from $256.1 million in Q1 2023[33] Revenue Breakdown - New vehicle revenue reached $2,064.3 million, up 17% from $1,767.7 million year-over-year[21] - Total used vehicle revenue increased by 20% to $1,356.9 million, compared to $1,126.5 million in the prior year[21] - Parts and service revenue grew by 15% to $590.4 million, up from $515.6 million[21] - New vehicle revenue for Q1 2024 was $2,064.3 million, an increase of 16.8% from $1,767.7 million in Q1 2023[33] - Used vehicle revenue for Q1 2024 was $1,356.9 million, up 20.4% from $1,126.5 million in Q1 2023[33] - Parts and service revenue for Q1 2024 was $598.8 million, a 14.1% increase from $524.5 million in Q1 2023[33] Profitability Metrics - New vehicle gross profit decreased by 9% to $162.8 million, down from $178.9 million[27] - Total gross profit rose to $750.0 million, an 8% increase from $696.2 million in the prior year[27] - Total gross profit margin decreased to 17.9%, down from 19.4% year-over-year, reflecting a decline of 158 basis points[27] - Operating expenses increased by 16% to $468.6 million, compared to $403.0 million in the same period last year[27] - SG&A as a percentage of gross profit rose to 62.5%, up from 57.9% in the previous year[27] Cash and Liquidity - As of March 31, 2024, the company had total liquidity of $712 million[7] - Cash and cash equivalents decreased by 37% to $29.0 million from $45.7 million at the end of December 2023[23] - Cash provided by operating activities for Q1 2024 was $177.1 million, slightly up from $171.7 million in Q1 2023[36] - Adjusted cash flow provided by operating activities was $208.7 million in Q1 2024, down from $243.9 million in Q1 2023[36] Shareholder Actions - The company repurchased approximately 240,000 shares for $50 million during the quarter[1][8] Inventory and Liabilities - Inventory increased by 5% to $1,862.9 million compared to $1,768.3 million at the end of December 2023[23] - Total current liabilities decreased by 4% to $2,757.4 million from $2,875.7 million[23]

Wall Street expects a year-over-year decline in earnings on higher revenues when Asbury Automotive Group (ABG) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Apr ...

Core Insights - The Presidio Group LLC advised Asbury Automotive Group on the sale of a Lexus dealership in Wilmington, Delaware, to MileOne Autogroup, marking a strategic transaction in the automotive retail sector [1][2]. Company Overview - Asbury Automotive Group, a Fortune 500 company based in Duluth, Georgia, operates 157 new vehicle dealerships with 206 franchises, representing 31 domestic and foreign vehicle brands as of March 4, 2024 [4]. - Asbury has a multi-year plan for growth through both organic and acquisitive strategies, alongside an innovative online purchasing platform [4]. - The company offers a wide range of automotive products and services, including new and used vehicles, parts and service, and finance and insurance products [4]. Transaction Details - The transaction included the Koons Wilmington Lexus dealership and its real estate, which Asbury had acquired in December as part of a larger acquisition [1]. - This deal represents MileOne's first location in Wilmington and its second Lexus dealership, enhancing its portfolio [1][2]. Industry Context - The automotive dealership M&A activity has seen a fast start in 2024, with expectations for continued busy activity in the sector [2]. - The Presidio Group has a strong track record, having closed over 270 transactions worth more than $18 billion throughout its history [7].