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Asbury Q3 Earnings Miss Expectations, Revenues Rise Y/Y

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Asbury Automotive (ABG - Free Report) reported third-quarter 2024 adjusted earnings of $6.35 per share, which decreased 21.8% year over year and missed the Zacks Consensus Estimate of $6.65. In the reported quarter, revenues amounted to $4.24 billion, which increased 16% year over year but missed the Zacks Consensus Estimate of $4.36 billion.

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Segment Details

In the quarter, new vehicle revenues rose 16% year over year to $2.16 billion, missing the Zacks Consensus Estimate of $2.21 billion. The underperformance could be attributed to lower-than-expected units sold. Retail units sold in the segment amounted to 42,607 (up 16% year over year), which missed the consensus mark of 44,380 units. New vehicles average selling price (ASP) was $50,778 (remained flat year over year), which surpassed the consensus mark of $49,089. Gross profit from the segment came in at $150.4 million, decreasing 11% from the prior-year quarter but surpassing the Zacks Consensus Estimate of $146 million.

Used-vehicle retail revenues rose 13% from the year-ago figure to $1.15 billion, which missed the Zacks Consensus Estimate of $1.16 billion. Retail used vehicle units sold in the quarter totaled 37,347 (up 16% year over year), missing the consensus mark of 40,884 units. Retail used vehicle ASP was $30,751 (down 3% year over year), beating the Zacks Consensus Estimate of $30,473. Gross profit from the segment came in at $56.1 million (down 6% year over year) and missed the Zacks Consensus Estimate of $58 million.

Revenues from used vehicle wholesale business jumped 54% to $146.2 million but missed the consensus mark of $149 million. Gross profit from the unit rose 45% to $3.3 million but missed the consensus mark of $4.27 million.

Net revenues from the finance and insurance business amounted to $185.4 million, up 12% from the year-ago quarter. The metric, however, missed the Zacks Consensus Estimate of $196 million. Gross profit was $171.2 million, which rose 13% year over year but missed the Zacks Consensus Estimate of $172 million.

Revenues from the parts and service business rose 13% from the prior-year quarter to $593.1 million but missed the Zacks Consensus Estimate of $637 million. Gross profit from this segment came in at $337.1 million, which rose 16% year over year. However, it missed the Zacks Consensus Estimate of $366 million.

Other Tidbits

Selling, general & administrative expenses as a percentage of gross profit rose to 65%, which marked an increase of 680 basis points year over year.

As of Sept. 30, 2024, the company had cash and cash equivalents of $60.3 million, up from $45.7 million as of Dec. 31, 2023. It had a long-term debt of $3.38 billion as of Sept. 30, 2024, up from $3.2 billion as of Dec. 31, 2023.

During the quarter under review, ABG repurchased 394,000 shares for $89 million. As of Oct. 28, 2024, ABG had $276 million remaining under its share repurchase authorization.

Peer Releases

Lithia Motors, Inc. (LAD - Free Report) reported third-quarter 2024 earnings of $8.21 per share, beating the Zacks Consensus Estimate of $7.59 per share. This compares to earnings of $9.25 per share a year ago. LAD posted revenues of $9.2 billion for the quarter ended September 2024, which missed the Zacks Consensus Estimate of $9.4 billion and increased 11.4% year over year.

AutoNation (AN - Free Report) reported third-quarter 2024 earnings of $4.02 per share, missing the Zacks Consensus Estimate of $4.48 per share, declining 27% year over year. AN posted revenues of $6.59 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate of $6.73 billion. This compares to year-ago revenues of $6.89 billion. 

Penske Automotive Group, Inc. (PAG - Free Report) came out with quarterly earnings of $3.36 per share, which missed the Zacks Consensus Estimate of $3.48 per share and declined 13.8% year over year. PAG posted revenues of $7.59 billion for the quarter ended September 2024, which missed the Zacks Consensus Estimate of $7.77 billion and rose 2% year over year.

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