Asbury Automotive Group delivered a solid Q3 2024 performance in the face of meaningful near-term headwinds, including material hurricane-related disruption (Hurricane Helene) and ongoing stop-sale orders affecting high-margin Toyota/Lexus and BMW/GM models. Reported revenue rose 16% year over year to approximately $4.2 billion, with gross profit around $718 million and a gross margin near 16.9% (management communications cited 16.9%; GAAP data reflected ~16.5% depending on line items). Adjusted earnings per share (EPS) were $6.35 for the quarter, with the company estimating that excluding storm and stop-sale effects would have yielded ~$6.74–$6.78 EPS, underscoring a meaningful but bridgeable gap from reported results.
Management highlighted sequential improvements in used-vehicle profitability and a moderation in the decline of new-vehicle gross profit per unit (GPU) despite Stellantis-related headwinds. The near-term earnings impact was partly driven by two discrete items: (1) the effect of Hurricane Helene (EPS impact ~$0.07–$0.09) and (2) the stop-sale orders (EPS impact ~$0.32–$0.34), with additional anticipated drag from the fourth quarter storm Milton. The quarter also featured strategic actions such as portfolio optimization (divestiture of two stores), high-grade liquidity generation (adjusted operating cash flow of $404 million YTD) and a modest pace of buybacks (~$89 million on ~400k shares in Q3).
Looking ahead, ABG signaled a measured, profitability-centric path through the near term: continued Turk-TCA (Total Care Auto) rollouts planned for Florida and Koons, an upcoming Tekion-based technology pilot in four shared-service stores, and a commitment to maintaining mid-60% SG&A as a percentage of gross profit in the near term due to hurricane and stop-sale headwinds. Management reiterated that TCA is expected to contribute pre-tax income of $70–$80 million for the full year, with ongoing capital allocation to buybacks and selective M&A opportunities.
Overall, the quarter reinforces ABG’s leverage-friendly balance sheet, diversified revenue mix (new, used, F&I, and fixed operations), and a portfolio-positioning strategy designed to weather episodic disruptions while pursuing medium-term margin expansion through labor productivity gains and technology-enabled efficiency.