Asbury Automotive Group (ABG, Financial) stock surged after the luxury automotive manufacturer and tech company ABG reported generally mixed figures for its third quarter of 2024. Revenues up 16 % to $4.2 bn, while net income plunged by 25%. The automotive giant recorded $126 million of net profits, or $6.37 per diluted share, compared with $169 million, or $8.19 per share, a year ago. Excluding certain non-recurring occurrences, income as adjusted was also down at $126 million or $6.35 diluted per share.
In these earnings, the company blamed some of them for each halt in the sale of some models that affected almost 1,200 new ones besides havoc from Hurricane Helene. These factors led to an estimated decrease in earnings per share between $0.39 and $0.43. Despite these disappointments, Asbury noted a relatively short sequential increase in selling, general and administrative expenses as a percentage of gross profit to improve by up to 39 basis points on an adjusted basis.
Accomplishing the growth of this statue while confronting such headwinds is no small feat, Asbury's President and CEO, David Hult, said of his hardworking team. “Our Parts & Service segment, especially in the Customer Pay area, was another area of growth, which is quite profitable for the company,” Hult added.
Amid financial fluctuation, Asbury insisted on its well-planned capital expenditure and gave back around 394000 shares for $89 million. The numbers belong to the overall picture of how the industry as a whole and individual brands adapt to readjusting inventory and other macro factors, including the consequences of recent natural disasters across the globe.
