Asbury Automotive ABG reported fourth-quarter 2024 adjusted earnings per share of $7.26, which outpaced the Zacks Consensus Estimate of $6.07 and increased from $7.12 generated in the year-ago period. Better-than-expected sales and gross profit from new and used vehicle business largely drove the results. In the reported quarter, revenues amounted to $4.5 billion, which increased 18% year over year and surpassed the Zacks Consensus Estimate of $4.13 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise
Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise
Asbury Automotive Group, Inc. price-consensus-eps-surprise-chart | Asbury Automotive Group, Inc. Quote
ABG’s Segment Details
In the quarter, new vehicle revenues rose 19% year over year to $2.45 billion, beating the Zacks Consensus Estimate of $2.18 billion. The outperformance could be attributed to higher-than-expected units sold and better pricing. Retail units sold in the segment totaled 47,255 (up 18% year over year), which exceeded the consensus mark of 42,938 units. New vehicle average selling price (ASP) was $51,996 (up 1%), which surpassed the consensus mark of $50,599. Gross profit from the segment came in at $172.1 million, up 1% from the prior-year quarter. The metric also surpassed the Zacks Consensus Estimate of $145 million.
Used-vehicle retail revenues rose 14% from the year-ago figure to $1.1 billion and beat the Zacks Consensus Estimate of $957 million. Retail used vehicle units sold in the quarter totaled 35,328 (up 15% year over year), outpacing the consensus mark of 33,574 units. Retail used vehicle ASP was $31,106 (down 1% year over year), which beat the Zacks Consensus Estimate of $30,362. Gross profit from the segment came in at $51.2 million (down 2% year over year) and beat the Zacks Consensus Estimate of $49.1 million.
Revenues from the used vehicle wholesale business jumped 55% to $160 million and topped the consensus mark of $138 million. Gross profit from the unit rose 8% to $1.9 million but missed the consensus mark of $3.28 million.
Net revenues from the finance and insurance business amounted to $198.5 million, up 16% from the year-ago quarter. The metric also beat the Zacks Consensus Estimate of $189 million. Gross profit was $184.6 million, which rose 13% year over year and exceeded the Zacks Consensus Estimate of $170 million.
Revenues from the parts and service business rose 15% from the prior-year quarter to $590.4 million but missed the Zacks Consensus Estimate of $599 million. Gross profit from this segment came in at $340 million, which matched the consensus mark and rose 19% year over year.
Other Tidbits
Selling, general & administrative expenses as a percentage of gross profit rose to 63.6%, which marked an increase of 208 basis points year over year.
As of Dec. 31, 2024, the company had cash and cash equivalents of $69.4 million, up from $45.7 million as of Dec. 31, 2023. It had a long-term debt of $3.14 billion as of Dec. 31, 2024, down from $3.2 billion as of Dec. 31, 2023.
In full-year 2024, ABG repurchased 830,000 shares for $183 million. As of Dec. 31, 2024, ABG had $276 million remaining under its share repurchase authorization.
Asbury currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Big Releases From the Auto Space
General Motors GM reported fourth-quarter 2024 adjusted earnings of $1.92 per share, which surpassed the Zacks Consensus Estimate of $1.85. The bottom line also increased from the year-ago quarter’s level of $1.24. Revenues of $47.71 billion beat the Zacks Consensus Estimate of $44 billion and increased from $42.98 billion recorded in the year-ago period.
For 2025, GM expects adjusted EBIT in the range of $13.7-$15.7 billion compared with $14.9 billion recorded in 2024. Adjusted EPS is anticipated in the range of $11-$12 compared with $10.60 recorded in 2024.
PACCAR PCAR recorded earnings of $1.68 per share for the fourth quarter of 2024, which beat the Zacks Consensus Estimate of $1.66 but declined from $2.70 per share reported in the year-ago period. Consolidated revenues (including trucks and financial services) came in at $7.9 billion, down from $9 billion in the corresponding quarter of 2023. Sales from Trucks, Parts and Others were $7.36 billion.
PCAR expects capex and R&D expenses for 2025 in the band of $700-$800 million and $460-$500 million, respectively.
Tesla TSLA reported fourth-quarter 2024 earnings per share of 73 cents, which missed the Zacks Consensus Estimate of 75 cents but increased from the year-ago figure of 71 cents. Total revenues of $25.71 billion also lagged the consensus mark of $27.5 billion but inched up from $25.17 billion recorded in the corresponding quarter of 2023.
TSLA remains committed to starting the production of affordable vehicles in the first half of this year. It also reaffirmed that Cybercab will begin volume production in 2026. And most importantly, energy storage deployments are expected to grow at least 50% this year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
