Asbury Automotive ( (ABG) ) has realeased its Q3 earnings. Here is a breakdown of the information Asbury Automotive presented to its investors.
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Asbury Automotive Group, Inc., a leading U.S. automotive retail and service company, operates numerous vehicle dealerships and service centers, offering a comprehensive range of automotive products and services. Headquartered in Duluth, Georgia, Asbury is recognized for its strategic growth through acquisitions and innovation in the automotive sector.
In the third quarter of 2024, Asbury Automotive reported revenue of $4.2 billion, marking a 16% increase over the previous year. Despite this growth, the company faced a 25% decrease in net income to $126 million, attributed to challenges such as stop sale orders and the impact of Hurricane Helene, which affected vehicle sales and business operations.
Key financial metrics highlighted in the report include a gross profit increase of 7% to $718 million, though gross margin saw a decline. Notably, the parts and service segment showed a robust profit growth of 16%. The company also repurchased nearly 400,000 shares for $89 million, reflecting a strategic capital allocation decision. Despite the overall revenue increase, new and used vehicle gross profits declined, underscoring the impact of external challenges.
Looking forward, Asbury Automotive remains focused on improving operational efficiencies and capitalizing on their parts and service strengths, while navigating the challenges posed by inventory normalization and external disruptions. The company’s continued strategy involves enhancing its dealership operations and leveraging growth opportunities in the automotive retail market.
