Yahoo Finanza Asbury Automotive Group Reports Mixed Q1 Earnings, Misses EPS Estimates
Revenue: Reported $4.2 billion, marking a 17% increase year-over-year, surpassing the estimated $4.264 billion.
Earnings Per Share (EPS): Achieved $7.21 per diluted share, falling short of the estimated $7.76.
Net Income: Totalled $147 million, below the estimated $158.15 million.
Parts and Service Revenue: Grew by 15% with a gross profit increase of 18%.
Share Repurchases: Bought back approximately 240,000 shares for $50 million during the quarter.
Operating Margin: Declined to 6.3%, a decrease of 146 basis points from the previous year.
Same-Store Sales: Experienced a revenue decrease of 1% and a gross profit decrease of 8% in comparison to the same period last year.
On April 25, 2024, Asbury Automotive Group Inc (NYSE:ABG) disclosed its first-quarter earnings through an 8-K filing, revealing a complex financial landscape. The company, a prominent player in the automotive retail and service sector, reported a significant revenue increase to $4.2 billion, up 17% from the previous year, marking a milestone as it surpassed the $4 billion threshold for the first time. However, earnings per share (EPS) for the quarter stood at $7.21, falling short of analyst expectations of $7.76.
Company Overview
Asbury Automotive Group operates 158 new-vehicle stores and 37 collision centers across 16 states, primarily in regions like Texas, the West, the Mid-Atlantic, and the Southeast. The company, which went public in March 2002, has a strong presence in the luxury and import segments, accounting for over 70% of its new-vehicle revenue. Asbury also offers a range of financial products through its Total Care Auto, targeting a revenue goal of $30 billion by 2030.
Financial Performance and Market Challenges
The company's net income for the quarter was $147 million, a 19% decrease from $181 million in the same period last year. This decline in profitability was accompanied by a decrease in operating margin, which fell to 6.3% from 7.9% year-over-year. Despite these challenges, Asbury achieved a 15% increase in parts and service revenue and an 18% growth in gross profit in the same sector, highlighting the strength of its service-based operations.
David Hult, President and CEO of Asbury, commented on the results:
We delivered a strong first quarter, crossing over $4 billion in revenue for the first time in our companys history. Our performance was driven by the hard work of our team members and our focus on the same store operations and the strength and strategic fit of our acquisitions."
Operational Highlights and Future Outlook
Asbury's strategic initiatives, including the integration of new acquisitions and the focus on preowned vehicle volume, have been central to navigating the current market dynamics. The company also repurchased approximately 240,000 shares for $50 million during the quarter, reflecting confidence in its financial strategy and future growth.
Looking ahead, Asbury's management remains focused on sustaining growth through strategic acquisitions and enhancing operational efficiency. The company's robust revenue growth, despite a challenging economic environment, positions it well for future expansions.
Investors and stakeholders can expect further insights during Asbury's earnings conference call, scheduled for April 25, 2024, at 10:00 a.m. ET. The call will be accessible via a live webcast on the company's investor relations website.
Conclusion
Asbury Automotive Group's first-quarter results reflect a resilient performance amidst market volatility, underscored by significant revenue growth and strategic capital management. While the EPS fell short of expectations, the company's overall financial health and strategic initiatives suggest a positive outlook for the coming quarters.
Explore the complete 8-K earnings release (here) from Asbury Automotive Group Inc for further details.
This article first appeared on GuruFocus.
