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Asbury Automotive Group (ABG - Free Report) reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. This outperformance can be primarily attributed to higher-than-expected gross profit from the new-vehicle and finance & insurance units. In the reported quarter, revenues amounted to $3.7 billion, surging 40% year over year. The top line, however, fell short of the Zacks Consensus Estimate of $3.8 billion.
Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise
In the quarter, new-vehicle revenues jumped 44% year over year to $1,846 million, missing the Zacks Consensus Estimate of $1,867 million. Gross profit from the segment came in at $198.4 million, soaring 20% from the prior-year quarter and beating the consensus mark of $197 million.
Used-vehicle revenues rose 24% from the year-ago figure to $1,153 million but missed the consensus mark of $1,249 million. Gross profit from the segment came in at $68 million, which fell 11.7% and lagged the Zacks Consensus Estimate of $69 million.
Net revenues in the finance and insurance business amounted to $190.6 million, up 74% from the year-ago quarter and outpacing the consensus mark of $183 million. Gross profit was $183.9 million, rising 74% year over year and beating the consensus estimate of $182 million.
Revenues from the parts and service business rose 56% from the prior-year quarter to $516.1 million, but missed the consensus mark of $533 million. Gross profit from this segment came in at $288 million, rising 48% year over year but missing the consensus estimate of $301 million.
Other Tidbits
Adjusted selling, general & administrative (SG&A) expenses as a percentage of gross profit rose to 57.1%, marking an increase of 258 basis points year over year. Asbury sold nearly 8,400 vehicles, an uptick of 24% from the prior-year quarter, through the “end-to-end” online sales platform, Clicklane.
As of Dec 31,2022, the company had cash and cash equivalents of $235.3 million, up from $178.9 million on Dec 31, 2021. It had long-term debt of $3,301.2 million as of Dec 31,2022, down from $3,582.6 million on Dec 31, 2021.
During 2022, Asbury repurchased approximately 1.6 million shares for nearly $300 million. During the last reported quarter, the company adopted a Rule 10b5-1 trading plan, effective for trading Dec 19, 2022, through Feb 1, 2023. From Oct 1, 2022 through Feb 1, 2023, the company repurchased around 600,000 shares for $108 million. On Jan 26, 2023, Asbury boosted its share repurchase authorization to $200 million. As of Feb 1, the company had $200 million share repurchase authorization remaining.
Zacks Rank & Key Picks
ABG carries a Zacks Rank #4 (Sell)
A couple of top-ranked players in the same industry are Wabash (WNC - Free Report) and Byd Co (BYDDY - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 earnings implies year-over-year growth of 17.78%.
BYD Company Limited is principally engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings implies year-over-year growth of 41.83% and 31.77%, respectively.
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Asbury (ABG) Q4 Earnings Outstrip Estimates, Jump 22.2% Y/Y
Asbury Automotive Group (ABG - Free Report) reported impressive fourth-quarter 2022 adjusted earnings of $9.12 per share, which increased 22.2% year over year and topped the Zacks Consensus Estimate of $8.23 per share. This outperformance can be primarily attributed to higher-than-expected gross profit from the new-vehicle and finance & insurance units. In the reported quarter, revenues amounted to $3.7 billion, surging 40% year over year. The top line, however, fell short of the Zacks Consensus Estimate of $3.8 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 jumped 44% year over year to $1,846 million, missing the Zacks Consensus Estimate of $1,867 million. Gross profit from the segment came in at $198.4 million, soaring 20% from the prior-year quarter and beating the consensus mark of $197 million.
Used-vehicle revenues rose 24% from the year-ago figure to $1,153 million but missed the consensus mark of $1,249 million. Gross profit from the segment came in at $68 million, which fell 11.7% and lagged the Zacks Consensus Estimate of $69 million.
Net revenues in the finance and insurance business amounted to $190.6 million, up 74% from the year-ago quarter and outpacing the consensus mark of $183 million. Gross profit was $183.9 million, rising 74% year over year and beating the consensus estimate of $182 million.
Revenues from the parts and service business rose 56% from the prior-year quarter to $516.1 million, but missed the consensus mark of $533 million. Gross profit from this segment came in at $288 million, rising 48% year over year but missing the consensus estimate of $301 million.
Other Tidbits
Adjusted selling, general & administrative (SG&A) expenses as a percentage of gross profit rose to 57.1%, marking an increase of 258 basis points year over year. Asbury sold nearly 8,400 vehicles, an uptick of 24% from the prior-year quarter, through the “end-to-end” online sales platform, Clicklane.
As of Dec 31,2022, the company had cash and cash equivalents of $235.3 million, up from $178.9 million on Dec 31, 2021. It had long-term debt of $3,301.2 million as of Dec 31,2022, down from $3,582.6 million on Dec 31, 2021.
During 2022, Asbury repurchased approximately 1.6 million shares for nearly $300 million. During the last reported quarter, the company adopted a Rule 10b5-1 trading plan, effective for trading Dec 19, 2022, through Feb 1, 2023. From Oct 1, 2022 through Feb 1, 2023, the company repurchased around 600,000 shares for $108 million. On Jan 26, 2023, Asbury boosted its share repurchase authorization to $200 million. As of Feb 1, the company had $200 million share repurchase authorization remaining.
Zacks Rank & Key Picks
ABG carries a Zacks Rank #4 (Sell)
A couple of top-ranked players in the same industry are Wabash (WNC - Free Report) and Byd Co (BYDDY - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 earnings implies year-over-year growth of 17.78%.
BYD Company Limited is principally engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings implies year-over-year growth of 41.83% and 31.77%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.