Asbury Automotive Q2 adjusted EPS beats estimates on used vehicle profitability 

Overview

• U.S. auto retailer's Q2 revenue was flat yr/yr and missed analyst expectations

• Adjusted EPS for Q2 beat consensus, though fell 15% yr/yr

• Company repurchased $131 mln in shares during the quarter

Outlook

• Company expects to complete Tekion rollout across operations this fall

Result Drivers

• TEKION IMPLEMENTATION - Co said 70% of stores converted to new dealership management system, with management citing operating improvements in converted stores

• USED VEHICLE PROFITABILITY - Used retail gross profit per unit rose 16% yr/yr to $2,002

Company press release: ID:nBw2QMk4Pa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."

• Wall Street's median 12-month price target for Asbury Automotive Group Inc is $225.00, about 0.7% below its July 27 closing price of $226.64

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• July 28 - UK's Inchcape H1 revenue rises on strngth

• July 28 - Mercedes-Benz posts marginal Q2 revenue beat, lowers FY sales outlook

• July 28 - Axalta Q2 sales and adjusted EPS beat estimates on acquisitions

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)