Asbury Automotive Group (NYSE:ABG) Announces Quarterly Earnings Results, Misses Expectations By $0.34 EPS

Key Points

• Asbury Automotive reported quarterly EPS of $5.37, missing consensus by $0.34 (est. $5.71) and posting revenue of $4.11 billion vs. $4.48 billion expected, with EPS down from $6.82 a year earlier.
• Shares fell $4.40 to $195.63 on the print; the company trades at a P/E of 7.8 with a market cap of about $3.78 billion and carries an average analyst rating of "Hold" (average price target $241.57) amid several recent target cuts.
• Insiders and institutions showed buying activity: Director B. Christopher Disantis bought 500 shares (a 10.2% increase in his stake), while firms like Goldman Sachs substantially raised their holdings.

Asbury Automotive Group (NYSE:ABG - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported $5.37 EPS for the quarter, missing analysts' consensus estimates of $5.71 by ($0.34), FiscalAI reports. The business had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.48 billion. Asbury Automotive Group had a return on equity of 14.51% and a net margin of 2.73%.The company's revenue for the quarter was down .9% on a year-over-year basis. During the same quarter in the previous year, the business posted $6.82 EPS.

Asbury Automotive Group Stock Performance

ABG traded down $4.40 during trading on Tuesday, hitting $195.63. The stock had a trading volume of 95,175 shares, compared to its average volume of 222,852. The company has a 50 day moving average price of $203.63 and a 200-day moving average price of $224.96. The firm has a market cap of $3.78 billion, a price-to-earnings ratio of 7.80, a P/E/G ratio of 1.02 and a beta of 0.80. Asbury Automotive Group has a one year low of $184.61 and a one year high of $274.50. The company has a debt-to-equity ratio of 0.79, a current ratio of 0.95 and a quick ratio of 0.35.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Citigroup reduced their target price on Asbury Automotive Group from $260.00 to $212.00 and set a "neutral" rating for the company in a research note on Wednesday, April 8th. Barclays increased their price target on Asbury Automotive Group from $230.00 to $235.00 and gave the company an "equal weight" rating in a research note on Tuesday, April 7th. Bank of America began coverage on shares of Asbury Automotive Group in a research report on Wednesday, March 4th. They set a "buy" rating for the company. Weiss Ratings downgraded shares of Asbury Automotive Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, February 23rd. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Asbury Automotive Group from $240.00 to $235.00 and set an "underweight" rating on the stock in a research report on Friday, April 17th. Two equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Asbury Automotive Group has an average rating of "Hold" and an average price target of $241.57.

Insiders Place Their Bets

In other news, Director B. Christopher Disantis acquired 500 shares of the stock in a transaction on Tuesday, March 10th. The shares were purchased at an average price of $202.30 per share, for a total transaction of $101,150.00. Following the transaction, the director directly owned 5,400 shares of the company's stock, valued at approximately $1,092,420. This represents a 10.20% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.75% of the stock is owned by insiders.

Hedge Funds Weigh In On Asbury Automotive Group

Institutional investors and hedge funds have recently modified their holdings of the business. AQR Capital Management LLC raised its holdings in Asbury Automotive Group by 11.0% in the 1st quarter. AQR Capital Management LLC now owns 6,263 shares of the company's stock valued at $1,383,000 after acquiring an additional 619 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Asbury Automotive Group by 49.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 278,760 shares of the company's stock worth $61,561,000 after purchasing an additional 91,767 shares in the last quarter. United Services Automobile Association bought a new position in shares of Asbury Automotive Group in the first quarter worth $265,000. Empowered Funds LLC increased its position in shares of Asbury Automotive Group by 11.4% in the first quarter. Empowered Funds LLC now owns 7,639 shares of the company's stock worth $1,687,000 after purchasing an additional 783 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Asbury Automotive Group by 3.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 51,239 shares of the company's stock valued at $11,316,000 after purchasing an additional 1,676 shares in the last quarter.

Asbury Automotive Group Company Profile

Asbury Automotive Group, Inc NYSE: ABG is one of the largest automotive retailers in the United States. Headquartered in Duluth, Georgia, the company operates a network of franchised dealerships representing a diverse portfolio of automotive brands. Its core business activities include the sale of new and pre-owned vehicles, as well as the provision of vehicle finance, insurance and protection products to retail customers.

In addition to retail sales, Asbury offers a comprehensive suite of after-sales services, from scheduled maintenance and certified collision repair to parts distribution.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.