Auto retailer Asbury's Q2 revenue misses estimates

Overview

• Asbury Q2 revenue rises 3% yr/yr but missed analyst expectations, per LSEG data

• Adjusted EPS for Q2 beats consensus, reflecting strong operational performance

• Co completed acquisition of The Herb Chambers Automotive Group

Outlook

• Company focuses on long-term operational success with strategic portfolio optimization

• No specific financial guidance provided for future quarters or full year

• Company continues to focus on growth, profitability, and cost discipline

Result Drivers

• PARTS & SERVICE - Record gross profit of $355 mln driven by increased parts and service revenue

• USED VEHICLE PROFIT - Used vehicle retail gross profit rose 11% despite a 6% decrease in unit volume

• ACQUISITIONS & DIVESTITURES - Acquisition of Herb Chambers Automotive Group and divestiture of nine stores as part of portfolio optimization strategy

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."

• Wall Street's median 12-month price target for Asbury Automotive Group Inc is $240.50, about 4.7% above its July 28 closing price of $229.20

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBwGp2N3a