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Why Is Asbury Automotive (ABG) Up 11.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Asbury Automotive Group (ABG - Free Report) . Shares have added about 11.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Asbury Automotive due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Asbury's Q3 Earnings Miss Estimates
Asbury reported 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -7.41% due to these changes.
VGM Scores
Currently, Asbury Automotive has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Asbury Automotive has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Asbury Automotive is part of the Zacks Automotive - Retail and Whole Sales industry. Over the past month, AutoNation (AN - Free Report) , a stock from the same industry, has gained 12.6%. The company reported its results for the quarter ended September 2024 more than a month ago.
AutoNation reported revenues of $6.59 billion in the last reported quarter, representing a year-over-year change of -4.5%. EPS of $4.02 for the same period compares with $5.54 a year ago.
AutoNation is expected to post earnings of $4.26 per share for the current quarter, representing a year-over-year change of -15.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for AutoNation. Also, the stock has a VGM Score of C.
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Why Is Asbury Automotive (ABG) Up 11.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Asbury Automotive Group (ABG - Free Report) . Shares have added about 11.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Asbury Automotive due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Asbury's Q3 Earnings Miss Estimates
Asbury reported 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -7.41% due to these changes.
VGM Scores
Currently, Asbury Automotive has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Asbury Automotive has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Asbury Automotive is part of the Zacks Automotive - Retail and Whole Sales industry. Over the past month, AutoNation (AN - Free Report) , a stock from the same industry, has gained 12.6%. The company reported its results for the quarter ended September 2024 more than a month ago.
AutoNation reported revenues of $6.59 billion in the last reported quarter, representing a year-over-year change of -4.5%. EPS of $4.02 for the same period compares with $5.54 a year ago.
AutoNation is expected to post earnings of $4.26 per share for the current quarter, representing a year-over-year change of -15.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for AutoNation. Also, the stock has a VGM Score of C.