Asbury Automotive Group
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Asbury Automotive Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved significantly.
Margins improved across the board.
Asbury Automotive Group notched revenue of $1.09 billion. The seven analysts polled by S&P Capital IQ foresaw revenue of $1.09 billion on the same basis. GAAP reported sales were 6.8% higher than the prior-year quarter's $1.02 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.54. The eight earnings estimates compiled by S&P Capital IQ predicted $0.43 per share on the same basis. GAAP EPS of $0.68 for Q4 were 325% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.5%, 30 basis points better than the prior-year quarter. Operating margin was 3.7%, 50 basis points better than the prior-year quarter. Net margin was 2.0%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.08 billion. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $4.63 billion. The average EPS estimate is $2.05.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 101 members out of 117 rating the stock outperform, and 16 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Asbury Automotive Group a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Asbury Automotive Group is outperform, with an average price target of $25.10.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Asbury Automotive Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.