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Asbury (ABG) Stock Declines 11.2% Since Q2 Earnings Miss
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Shares of Asbury Automotive (ABG - Free Report) have plunged 11.2% since the company reported second-quarter 2024 results. Adjusted earnings of $6.40 per share decreased 28.5% year over year and missed the Zacks Consensus Estimate of $7.31 on lower-than-expected gross profit from all businesses.
In the reported quarter, revenues amounted to $4.25 billion, which increased 13% year over year but missed the Zacks Consensus Estimate of $4.36 billion.
Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise
In the quarter, new vehicle revenues rose 11% year over year to $2.16 billion, missing the Zacks Consensus Estimate of $2.27 billion. The underperformance could be attributed to lower-than-expected units sold, partly offset by higher average selling prices (ASPs). Retail units sold in the segment amounted to 42,679 (up 12% year over year), which missed the consensus mark of 45,557 units. New vehicles ASP was $50,725 (remained flat year over year), which surpassed the consensus mark of $49,652. Gross profit from the segment came in at $155.1 million, decreasing 16% from the prior-year quarter and missing the Zacks Consensus Estimate of $167 million.
Used-vehicle retail revenues rose 15% from the year-ago figure to $1.17 billion, which beat the Zacks Consensus Estimate of $1.15 billion. Retail used vehicle units sold in the quarter totaled 38,534 (up 22% year over year), missing the consensus mark of 39,470 units. Retail used vehicle ASP was $30,289 (down 5% year over year), missing the Zacks Consensus Estimate of $30,864. Gross profit from the segment came in at $56.4 million (down 14% year over year) and missed the Zacks Consensus Estimate of $62 million.
Revenues from used vehicle wholesale business jumped 50% to $140.9 million but missed the consensus mark of $148 million. Gross profit from the unit fell 8% to $4.60 million and missed the consensus mark of $4.94 million.
Net revenues from the finance and insurance business amounted to $192.4 million, up 16% from the year-ago quarter. The metric, however, missed the Zacks Consensus Estimate of $203 million. Gross profit was $174.7 million, which rose 6% year over year but missed the Zacks Consensus Estimate of $177 million.
Revenues from the parts and service business rose 10% from the prior-year quarter to $580.9 million but missed the Zacks Consensus Estimate of $629 million. Gross profit from this segment came in at $339.9 million, which rose 16% year over year. However, it missed the Zacks Consensus Estimate of $347 million.
Other Tidbits
Selling, general & administrative expenses as a percentage of gross profit rose to 65.2%, which marked an increase of 792 basis points year over year.
As of Jun 30, 2024, the company had cash and cash equivalents of $67.2 million, up from $45.7 million as of Dec 31, 2023. It had a long-term debt of $3.60 billion as of Jun 30, 2024, up from $3.2 billion as of Dec 31, 2023.
During the quarter under review, ABG repurchased 193,000 shares for $43 million. As of Aug 1, 2024, ABG had $329 million remaining under its share repurchase authorization.
The consensus estimate for DORM’s 2024 sales and earnings suggests a year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 20 cents and 22 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.11% and 14.73%, respectively. EPS estimates for 2024 and 2025 have improved 14 cents and 19 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PLOW’s 2024 sales and earnings suggests year-over-year growth of 6.45% and 60.4%, respectively. EPS estimates for 2024 and 2025 have improved 15 cents and 2 cents, respectively, in the past 30 days.
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Asbury (ABG) Stock Declines 11.2% Since Q2 Earnings Miss
Shares of Asbury Automotive (ABG - Free Report) have plunged 11.2% since the company reported second-quarter 2024 results. Adjusted earnings of $6.40 per share decreased 28.5% year over year and missed the Zacks Consensus Estimate of $7.31 on lower-than-expected gross profit from all businesses.
In the reported quarter, revenues amounted to $4.25 billion, which increased 13% year over year but missed the Zacks Consensus Estimate of $4.36 billion.
Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise
Asbury Automotive Group, Inc. price-consensus-eps-surprise-chart | Asbury Automotive Group, Inc. Quote
Segment Details
In the quarter, new vehicle revenues rose 11% year over year to $2.16 billion, missing the Zacks Consensus Estimate of $2.27 billion. The underperformance could be attributed to lower-than-expected units sold, partly offset by higher average selling prices (ASPs). Retail units sold in the segment amounted to 42,679 (up 12% year over year), which missed the consensus mark of 45,557 units. New vehicles ASP was $50,725 (remained flat year over year), which surpassed the consensus mark of $49,652. Gross profit from the segment came in at $155.1 million, decreasing 16% from the prior-year quarter and missing the Zacks Consensus Estimate of $167 million.
Used-vehicle retail revenues rose 15% from the year-ago figure to $1.17 billion, which beat the Zacks Consensus Estimate of $1.15 billion. Retail used vehicle units sold in the quarter totaled 38,534 (up 22% year over year), missing the consensus mark of 39,470 units. Retail used vehicle ASP was $30,289 (down 5% year over year), missing the Zacks Consensus Estimate of $30,864. Gross profit from the segment came in at $56.4 million (down 14% year over year) and missed the Zacks Consensus Estimate of $62 million.
Revenues from used vehicle wholesale business jumped 50% to $140.9 million but missed the consensus mark of $148 million. Gross profit from the unit fell 8% to $4.60 million and missed the consensus mark of $4.94 million.
Net revenues from the finance and insurance business amounted to $192.4 million, up 16% from the year-ago quarter. The metric, however, missed the Zacks Consensus Estimate of $203 million. Gross profit was $174.7 million, which rose 6% year over year but missed the Zacks Consensus Estimate of $177 million.
Revenues from the parts and service business rose 10% from the prior-year quarter to $580.9 million but missed the Zacks Consensus Estimate of $629 million. Gross profit from this segment came in at $339.9 million, which rose 16% year over year. However, it missed the Zacks Consensus Estimate of $347 million.
Other Tidbits
Selling, general & administrative expenses as a percentage of gross profit rose to 65.2%, which marked an increase of 792 basis points year over year.
As of Jun 30, 2024, the company had cash and cash equivalents of $67.2 million, up from $45.7 million as of Dec 31, 2023. It had a long-term debt of $3.60 billion as of Jun 30, 2024, up from $3.2 billion as of Dec 31, 2023.
During the quarter under review, ABG repurchased 193,000 shares for $43 million. As of Aug 1, 2024, ABG had $329 million remaining under its share repurchase authorization.
Zacks Rank & Key Picks
ABG currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , BYD Company Limited (BYDDY - Free Report) and Douglas Dynamics, Inc. (PLOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for DORM’s 2024 sales and earnings suggests a year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 20 cents and 22 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.11% and 14.73%, respectively. EPS estimates for 2024 and 2025 have improved 14 cents and 19 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PLOW’s 2024 sales and earnings suggests year-over-year growth of 6.45% and 60.4%, respectively. EPS estimates for 2024 and 2025 have improved 15 cents and 2 cents, respectively, in the past 30 days.