NYSE$ABG

Asbury Automotive Group Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Asbury's financial performance reached record levels, demonstrating resilience amidst a challenging macro environment and the impact of Hurricane Ian.

Asbury Automotive Group reported record third-quarter results, with a 39% increase in net income to $205 million and a 61% increase in revenue to $3.9 billion, driven by strong performance across new and used vehicles, parts and service, and finance and insurance. The company navigated a challenging macro environment, including the impact of Hurricane Ian, while maintaining a disciplined cost strategy and strengthening its balance sheet.

  • Net income increased by 39% year-over-year to $205 million, with EPS reaching $9.23 per diluted share.
  • Revenue grew by 61% compared to the prior year quarter, reaching $3.9 billion.
  • Gross profit increased by 60% year-over-year, with an operating margin of 8.1%.
  • Fixed operations revenue and F&I revenue saw significant increases of 80% and 99%, respectively.

Headline financials

Total Revenue

$3.87B

Previous: $2.41B+60.7%
EPS (adj)

$9.23

Previous: $7.36+25.4%
Capital Expenditures

-$10.2M

Previous: -$7.8M-30.8%
Free Cash Flow

$195M

Previous: $139M+39.9%
Net Income

$205M

Previous: $147M+39.5%
Operating Income

$314M

Previous: $201M+56.0%
Gross Profit

$768M

Previous: $480M+60.0%
Cash & Equivalents

$141M

Previous: $331M-57.3%
Total Assets

$7.82B

Previous: $3.57B+118.9%
Stock-Based Comp

$4.7M

Previous: $3.9M+20.5%

Revenue & EPS history

Asbury · Revenue · Quarterly

$3.87B

Q3 2022+60.7%vs Q3 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Asbury · $3.87B total across 4 segments · Q3 2022

  • New Vehicle Revenue
    $1.8B+59.3%
  • Used Vehicle Revenue
    $1.33B+51.4%
  • Parts and Service Revenue
    $536M+80.4%
  • Net Finance and Insurance
    $200M+99.2%

Forward guidance

The press release contains forward-looking statements regarding the company's future financial position, liquidity, results of operations, cash flows, leverage, market position, and dealership portfolio.

Tailwinds

  • Revenue enhancement strategies
  • Operational improvements
  • Expected benefits of Clicklane
  • Management’s plans, projections and objectives for future operations, scale and performance
  • Integration plans and expected synergies from acquisitions

Headwinds

  • Changes in general economic and business conditions, including increases in interest rates and rising fuel prices
  • Any impact of COVID-19 on the automotive industry in general, the automotive retail industry in particular and our customers, suppliers, vendors and business partners
  • Our relationships with vehicle manufacturers
  • Our ability to maintain our margins
  • Operating cash flows and availability of capital

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.8%

Avg return

30 days after

40%

26 / 65 earnings

Positive

+16.1%

Q1 2022

Best reaction

-12.6%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%+1.5%-2.7%
Q4 2025-7.0%-3.6%-13.6%
Q3 2025+1.2%+0.1%+0.1%
Q1 2025-3.6%-0.9%+0.8%
Q4 2024+11.5%+7.8%-2.2%
Q3 2024+3.3%+1.1%+15.3%
Q2 2024-12.6%-13.7%-6.8%
Q1 2024+0.2%-5.1%+4.4%
Q4 2023+2.5%+3.6%-0.5%
Q3 2023-7.2%-6.3%+4.0%
Q2 2023-4.7%-5.6%-6.6%
Q1 2023-10.1%-6.5%-2.8%
Q4 2022+5.0%+1.8%+2.8%
Q3 2022+1.5%+8.5%+17.4%
Q2 2022+5.0%+6.9%+12.7%
Q1 2022+16.1%+23.1%+17.0%
Q4 2021+14.6%+15.6%+20.7%
Q3 2021-11.1%-12.4%-26.6%
Q2 2021-1.2%+4.3%-5.9%
Q1 2021-1.6%-4.5%-4.1%
Q4 2020-3.0%+2.5%+11.0%
Q3 2020-8.6%-11.7%+3.6%
Q2 2020-4.3%-7.9%-4.6%
Q1 2020-1.7%+5.4%+22.2%
Q4 2019-0.8%-2.9%-2.4%
Q3 2019-6.3%-2.9%+2.8%
Q2 2019+5.3%+2.6%-1.1%
Q1 2019+8.4%+10.6%+6.1%
Q4 2018-4.5%-4.7%-7.5%
Q3 2018+10.7%+13.5%+14.9%
Q2 2018-1.0%-1.7%+9.2%
Q1 2018+4.1%+1.6%+3.7%
Q4 2017+4.4%+5.4%+3.0%
Q3 2017+5.4%+8.7%+14.6%
Q2 2017-5.3%-2.8%-10.7%
Q1 2017-3.0%-7.9%-10.9%
Q4 2016+2.8%+2.8%-3.7%
Q3 2016-6.2%-5.4%+10.6%
Q2 2016-1.4%-0.2%-13.0%
Q1 2016+9.0%
Q4 2015+3.3%
Q3 2015-9.5%
Q2 2015-9.0%
Q1 2015-1.2%
Q4 2014-1.1%
Q3 2014-5.9%
Q2 2014-0.6%
Q1 2014+9.4%
Q4 2013+8.4%
Q3 2013-10.9%
Q2 2013+3.9%
Q1 2013+11.8%
Q4 2012-3.1%
Q3 2012+4.0%
Q2 2012-1.9%
Q1 2012+5.3%
Q1 2011+5.3%
Q4 2009-0.4%
Q4 2011-0.4%
Q3 2011-1.5%
Q3 2010-1.5%
Q2 2010+0.0%
Q4 2010+0.0%
Q2 2011+0.0%
Q1 2010-5.1%

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