Asbury Automotive Surpasses Earnings Expectations in Q4 2024

Asbury Automotive's fourth-quarter 2024 performance shines with EPS at $7.26, exceeding estimates. The strong revenue growth of 18% from the previous year significantly boosts its market position.

Date: 01-02-2025

AI Rating: 7

Overview of Asbury Automotive's Q4 2024 Performance
Asbury Automotive reported strong Q4 2024 results that exceeded analysts' expectations. The company achieved adjusted earnings per share (EPS) of $7.26, which outpaced the Zacks Consensus Estimate of $6.07. This represents an increase from $7.12 in the same period last year. The solid performance was attributed to better-than-expected sales and gross profit from both new and used vehicle segments.

Earnings Per Share (EPS)
With the reported EPS significantly exceeding estimates, investors might view this positively as it indicates robust operational efficiency and profitability. The year-over-year increase suggests sustained growth in earnings, which could lead to an uptick in stock prices.

Revenue Growth
Total revenues for the reported quarter reached $4.5 billion, marking an 18% increase year over year. This figure also surpassed the Zacks Consensus Estimate of $4.13 billion. Such strong revenue growth is a positive signal for investors, reflecting the company's effective market strategies and strong demand for its products.

Segment Performance
Asbury's new vehicle sales revenue rose 19% year over year to $2.45 billion, supported by strong unit sales and favorable pricing, further beating estimates. Used vehicle revenues increased by 14%, also exceeding estimates, although the gross profit from this segment saw a 2% decline. Meanwhile, finance and insurance revenues advanced by 16%, surpassing expectations, contributing positively to gross profit trends. These consistent gains across major segments point to a strong market presence and diversification, likely boosting investor confidence.

Overall Impact
The details provided indicate a favorable outlook for Asbury Automotive's stock, considering its strong earnings performance, substantial revenue growth, and positive trends in core business segments. Furthermore, the company's decreasing long-term debt from $3.2 billion to $3.14 billion signals better financial health, which can also positively influence stock prices. However, increased selling, general, and administrative expenses as a percentage of gross profit could be a point of concern as it affects overall profitability.

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