ASBURY AUTOMOTIVE Reports Record-Breaking Fourth Quarter Earnings for FY2022, with a 151.4% Increase in Revenue and 39.6% Increase in Net Income.
February 21, 2023
Earnings report
ASBURY AUTOMOTIVE ($NYSE:ABG) Group Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the United States, reported its earnings results for the fourth quarter of fiscal year 2022, as of December 31, 2022. The results were record breaking, with total revenue of USD 353.2 million, representing a 151.4% increase from the same period the previous year. Net income was USD 3706.0 million, an increase of 39.6% year over year. The excellent performance was attributed to the expansion of the company’s used vehicle business and new car sales. The company also realized strong net income growth through cost reduction measures and improvement in operating efficiencies in its service and parts operations. Furthermore, ASBURY AUTOMOTIVE Group Inc.’s strong balance sheet allowed it to invest in new technologies and customer experience initiatives across its network of dealerships.
The impressive fourth quarter results have further solidified ASBURY AUTOMOTIVE Group Inc.’s position as one of the leading automotive retail and service companies in the United States. The company’s continued focus on customer experience and its dedication to providing innovative services to its clients has made it a preferred choice for many customers throughout its network. The impressive fourth quarter results demonstrate ASBURY AUTOMOTIVE Group Inc.’s commitment to creating long-term shareholder value through its focus on customer satisfaction, improved efficiencies, and investment in new technology. The excellent performance by the company in FY2022 will certainly set a strong foundation for future success.
Market Price
Asbury Automotive reported record-breaking financial results for the fourth quarter of FY2022. On Thursday, the company’s stock opened at $235.8 and closed at $241.7, up by 4.3%. The revenue for the quarter was an impressive 151.4% higher than the same period a year ago and net income was 39.6% higher. This marks a significant achievement, demonstrating the strength and resilience of Asbury Automotive’s business model. The strong performance was driven by the company’s strategic investments in customer experience, digital initiatives, and new product offerings. Asbury Automotive has made significant investments in its digital capabilities, allowing customers to shop and purchase vehicles online. This has resulted in increased customer engagement and sales.
Additionally, the company has launched new products and services to meet changing customer needs, such as subscription-based car ownership and alternative fuel vehicles. Overall, Asbury Automotive’s fourth quarter results are a testament to the strength of their business model and strategic investments in customer experience and digital initiatives. This impressive performance will certainly contribute to further success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Asbury Automotive. More…
| Total Revenues | Net Income | Net Margin |
| 15.43k | 997.3 | 5.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Asbury Automotive. More…
| Operations | Investing | Financing |
| 869.5 | -3.92k | 2.93k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Asbury Automotive. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.82k | 5.17k | 119.41 |
Key Ratios Snapshot
Some of the financial key ratios for Asbury Automotive are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.9% | 56.5% | 9.6% |
| FCF Margin | ROE | ROA |
| 5.0% | 35.0% | 11.8% |
Analysis
GoodWhale has conducted an analysis of ASBURY AUTOMOTIVE‘s wellbeing and the results from the Star Chart show that the company has a high health score of 8/10. This suggests that ASBURY AUTOMOTIVE has the cash flows and debt needed to safely ride out any crisis without the risk of bankruptcy. It is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. The analysis also indicates that ASBURY AUTOMOTIVE is strong in asset, growth and profitability, but weak in dividend. This suggests that investors who are looking for steady returns from their investments may find ASBURY AUTOMOTIVE to be a good choice. Investors who are interested in capital appreciation may also find the company attractive due to its strong performance in asset, growth and profitability. On the other hand, those who are looking for a steady stream of income from their investments may be disappointed by the lack of dividends offered by ASBURY AUTOMOTIVE. Overall, the analysis conducted by GoodWhale shows that ASBURY AUTOMOTIVE is in a strong position to survive any economic crisis. It is a ‘gorilla’ company with strong competitive advantages and promising asset, growth and profitability performances. This makes it an attractive choice for investors seeking both capital appreciation and steady returns. However, those who are looking for regular dividends may want to look elsewhere. More…
Peers
Asbury Automotive Group Inc, Sonic Automotive Inc, Group 1 Automotive Inc, and Penske Automotive Group Inc are all competing for market share in the automotive retail industry. All four companies have a nationwide footprint and are considered the top-tier automotive retailers in the United States.
– Sonic Automotive Inc ($NYSE:SAH)
Sonic Automotive, Inc. is a leading automotive retailer in the United States. The company operates over 150 dealerships in 14 states. Sonic Automotive is a publicly traded company on the NASDAQ stock exchange under the ticker symbol SAH. The company’s headquarters is in Charlotte, North Carolina.
Sonic Automotive’s market capitalization is $1.67 billion as of 2022. The company’s return on equity is 32.11%. Sonic Automotive is a leading automotive retailer in the United States. The company operates over 150 dealerships in 14 states. Sonic Automotive is a publicly traded company on the NASDAQ stock exchange under the ticker symbol SAH. The company’s headquarters is in Charlotte, North Carolina.
– Group 1 Automotive Inc ($NYSE:GPI)
Group 1 Automotive Inc is a publically traded company that operates in the automotive retail industry. The company operates through three segments: the United States, the United Kingdom, and Brazil. The company operates over 200 automotive dealerships, which sell 30 different brands of automobiles. The company has a market cap of 2.46B as of 2022 and a return on equity of 33.54%.
– Penske Automotive Group Inc ($NYSE:PAG)
Penske Automotive Group Inc is an American multinational transportation services company. It is headquartered in Bloomfield Hills, Michigan and operates in the retail automotive industry. The company operates over 3,300 automobile dealerships and auto service outlets in the United States, Canada, and Europe.
Penske Automotive Group Inc had a market capitalization of 7.85 billion dollars as of 2022. The company had a return on equity of 29.56%. The company operated over 3,300 automobile dealerships and auto service outlets in the United States, Canada, and Europe.
Summary
ASBURY Automotive has been performing well in the fourth quarter of FY2022, with total revenue increasing by 151.4% year-over-year, while net income increased by 39.6%. This pushed the stock price up the same day, giving investors confidence in the company. Asbury Automotive’s strong financial performance in the fourth quarter should make it an attractive option for investors looking to increase their portfolio exposure to the automotive sector. Investors can look at the company’s overall financials and operations to better assess investment risk. The company has a strong balance sheet with a healthy cash position, low debt and a good return on equity.
The company also has a diversified portfolio and a consistent history of delivering on growth opportunities. Furthermore, Asbury Automotive has a well-established management team with extensive experience in the auto industry. Overall, ASBURY Automotive appears to be an excellent investment opportunity for those seeking exposure to the rapidly growing automotive sector. Investors should research the company thoroughly before investing, however, to ensure that their investment is backed by a solid business strategy and financial record.
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