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Asbury's (ABG) Record Q2 Earnings and Sales Beat Estimates
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Asbury Automotive Group (ABG - Free Report) reported impressive second-quarter 2022 adjusted earnings of $10.04 per share, which increased 29% year over year from $7.78 and topped the Zacks Consensus Estimate of $8.88. This outperformance can be primarily attributed to higher-than-expected profit from Used Vehicle, Parts & Services and Finance & Insurance units. In the reported quarter, revenues amounted to $3,950.2 million, surging 53% year over year. The top line also outpaced the Zacks Consensus Estimate of $3,824 million.
Segment Details
In the quarter, new-vehicle revenues jumped 36% year over year to $1,864.5 million and beat the Zacks Consensus Estimate of $1,848 million. Gross profit from the segment came in at $220.4 million, soaring 78% from the prior-year quarter but missing the consensus mark of $223 million.
Used-vehicle revenues also rose 67% from the year-ago figure to $1,362.5 million, beating the consensus mark of $1,296 million. Gross profit from the segment came in at $104.2 million, which rose 25% and beat the Zacks Consensus Estimate of $94 million.
Net revenues in the finance and insurance business amounted to $203 million, increasing 90% from the year-ago quarter and outpacing the consensus mark of $183 million. Gross profit was $187.7 million, rising 75% year over year and beating the consensus estimate of $176 million.
Revenues from the parts and service business rose 78% from the prior-year quarter to $520.2 million and topped the consensus mark of $491 million. Gross profit from this segment came in at $290.4 million, rising 59% year over year and crossing the consensus estimate of $288 million.
Other Tidbits
Selling, general & administrative (SG&A) expenses as a percentage of gross profit rose to 55.8%, marking an increase of 160 basis points year over year. Asbury sold nearly 6,600 vehicles, an uptick of 55% over the prior year quarter through the “end-to-end” online sales platform, Clicklane.
As of Jun 30, the company had cash/cash equivalents of $100.1 million, down from $178.9 million as of Dec 31, 2021. It had long-term debt of $3,385.1 million as of Jun 30, falling from $3,582.6 million on Dec 31, 2021.
Genuine Parts has an expected earnings growth rate of 15.3% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 1.5% upward in the past 30 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 11.03%, on average. The stock has risen 17% over the past year.
LCI Industries has an expected earnings growth rate of 65.9% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. LCII pulled off a trailing four-quarter earnings surprise of 21.81%, on average. The stock has declined 10.5% in the past year.
Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has risen 10.1% over the past year.
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Asbury's (ABG) Record Q2 Earnings and Sales Beat Estimates
Asbury Automotive Group (ABG - Free Report) reported impressive second-quarter 2022 adjusted earnings of $10.04 per share, which increased 29% year over year from $7.78 and topped the Zacks Consensus Estimate of $8.88. This outperformance can be primarily attributed to higher-than-expected profit from Used Vehicle, Parts & Services and Finance & Insurance units. In the reported quarter, revenues amounted to $3,950.2 million, surging 53% year over year. The top line also outpaced the Zacks Consensus Estimate of $3,824 million.
Segment Details
In the quarter, new-vehicle revenues jumped 36% year over year to $1,864.5 million and beat the Zacks Consensus Estimate of $1,848 million. Gross profit from the segment came in at $220.4 million, soaring 78% from the prior-year quarter but missing the consensus mark of $223 million.
Used-vehicle revenues also rose 67% from the year-ago figure to $1,362.5 million, beating the consensus mark of $1,296 million. Gross profit from the segment came in at $104.2 million, which rose 25% and beat the Zacks Consensus Estimate of $94 million.
Net revenues in the finance and insurance business amounted to $203 million, increasing 90% from the year-ago quarter and outpacing the consensus mark of $183 million. Gross profit was $187.7 million, rising 75% year over year and beating the consensus estimate of $176 million.
Revenues from the parts and service business rose 78% from the prior-year quarter to $520.2 million and topped the consensus mark of $491 million. Gross profit from this segment came in at $290.4 million, rising 59% year over year and crossing the consensus estimate of $288 million.
Other Tidbits
Selling, general & administrative (SG&A) expenses as a percentage of gross profit rose to 55.8%, marking an increase of 160 basis points year over year. Asbury sold nearly 6,600 vehicles, an uptick of 55% over the prior year quarter through the “end-to-end” online sales platform, Clicklane.
As of Jun 30, the company had cash/cash equivalents of $100.1 million, down from $178.9 million as of Dec 31, 2021. It had long-term debt of $3,385.1 million as of Jun 30, falling from $3,582.6 million on Dec 31, 2021.
Zacks Rank & Key Picks
ABG carries a Zacks Rank #3 (Hold), currently.
Better-ranked players in the auto space include Genuine Parts Company (GPC - Free Report) , LCI Industries (LCII - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Genuine Parts has an expected earnings growth rate of 15.3% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 1.5% upward in the past 30 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 11.03%, on average. The stock has risen 17% over the past year.
LCI Industries has an expected earnings growth rate of 65.9% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. LCII pulled off a trailing four-quarter earnings surprise of 21.81%, on average. The stock has declined 10.5% in the past year.
Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has risen 10.1% over the past year.