Asbury Automotive Group Inc – Auto Stocks To Buy For 2021
Car dealerships were in the news lately because car prices in certain segments have been trending up. It is believed that the prices of used cars went up significantly post the outbreak of the pandemic. Now, with inflation seemingly making its way into the economy, the prices of many things, including vehicles have gone up. One of the most important auto dealership businesses in the southern United States is Asbury Automotive Group. It represents close to 30 different brands that include American, Asian, and European vehicle makers. The company deals in new and used cars. It also offers financing solutions, operates maintenance and repair centers, and a collision center as well. Asbury Automotive Group also has a vehicle auction facility. So, if you are looking to buy auto stocks now, then it may be a good idea to closely analyze businesses like Asbury Automotive Group.
Asbury Automotive Releases 3Q2021 Earnings Numbers
On 26th October 2021, Asbury Automotive Group announced its third-quarter 2021 earnings results. Total revenue was up from $1.8 billion in Q32020 to $2.4 billion. The net income was up from $96 million in Q32020 to $147 million in Q32021. Net income per share on a diluted basis was also up from $4.96 in Q32020 to $7.54. The used vehicle retail numbers grew the most year on year at 36% while new luxury vehicle sales in terms of the number of units were also up 29%. About 45% of the brands that Asbury Automotive Group represented in the third quarter of 2021 belonged to the luxury category. The part & services arm of the business is also very important as it accounted for 38% of the gross profit even though it only brought in 12% of the overall revenue. Asbury Automotive Group is an interesting company if you talk about the auto stocks to buy for 2021.
Buy Auto Stocks Now
One key aspect of Asbury Automotive Group is its financing segment. It is highly profitable and accounted for 21% of the overall gross profit. Staggeringly, it brought in only 4% of the total revenue.
