Asbury Automotive Group, Inc. - ABG STOCK NEWS

Asbury Automotive Group (NYSE: ABG) has rejected allegations by the Federal Trade Commission (FTC) against three of its Dallas-Ft. Worth area dealerships. The FTC claims these dealerships sold protection products without customer consent and discriminated against minorities. Asbury denies these accusations, stating that customers received full disclosure and signed for protection products. The company emphasizes its compliance procedures, including independent deal clerk reviews.

Asbury CEO David W. Hult affirmed the company's commitment to customer protection and service. The company plans to contest the FTC's lawsuit, confident in its practices and the absence of consumer complaints. Asbury also refutes claims of discrimination, highlighting its diverse workforce and commitment to fair lending practices. The company vows to defend its reputation and resist any coercion for fines or requirements that could negatively impact customer experience.

Kerrigan Advisors has represented Asbury Automotive Group (NYSE: ABG) in the sale of Nalley Chevrolet in Union City, Atlanta, to ALM Automotive Group. This marks Kerrigan Advisors' 276th dealership sold since inception and 70th franchise sold year-to-date. Asbury, one of the largest US auto retailers with $14.8 billion in revenue in 2023, continues to optimize its portfolio. The sale highlights strong buyer demand in the Southern region, particularly for Chevrolet, the top domestic brand. Atlanta's robust economy, growing 32% in five years, and Chevrolet's 13% sales growth in 2023 underscore the deal's attractiveness. Kerrigan Advisors' expertise in the buy/sell market and the Southern region played a important role in facilitating this transaction.

Asbury Automotive Group (NYSE: ABG) has been named one of America's Fastest-Growing Companies for 2024 by the Financial Times. The company achieved an impressive 114% Absolute Growth rate and a 28.88% Compound Growth rate, ranking 327th out of 500 companies with the strongest revenue growth.

The list, compiled by Statista, focuses on companies with the highest growth in publicly disclosed revenues between 2019 and 2022 in North and South America. Asbury's President and CEO, David Hult, attributed this recognition to the company's valuable team members and their dedication to providing exceptional guest experiences.

As one of the largest automotive retail and service companies in the U.S., Asbury's inclusion in this prestigious list highlights its significant and thoughtful growth in recent years.

Asbury Automotive Group (NYSE: ABG) reported record second quarter revenue of $4.2 billion, a 13% increase year-over-year. However, net income decreased 86% to $28 million ($1.39 per diluted share) compared to $196 million in Q2 2023. Adjusted net income fell 31% to $129 million ($6.40 per diluted share). The company's results were significantly impacted by a CDK Global cyber incident, estimated to have negatively affected earnings by $0.95 to $1.15 per diluted share. Despite challenges, Asbury achieved record parts & service revenue of $581 million and gross profit of $340 million. The company also repurchased approximately 193,000 shares for $43 million in Q2 and 592,000 shares for $130 million year-to-date through August 1, 2024.

Asbury Automotive Group (NYSE: ABG), a leading U.S. automotive retail and service company, has announced the release date for its second quarter 2024 financial results. The results will be unveiled before the market opens on Friday, August 2, 2024. Following the release, Asbury will host a conference call at 10:00 a.m. Eastern Time on the same day.

Investors and interested parties can access the live simulcast of the conference call via Asbury's investor relations website. A replay will be available for 30 days. For those preferring audio access, dial-in details have been provided for both domestic and international participants.

Asbury Automotive Group has announced the appointment of Dean A. Calloway as Senior Vice President, General Counsel, and Secretary, effective July 1, 2024. Calloway has been with Asbury since 2013, occupying various legal roles and demonstrating expertise in commercial litigation, cybersecurity, corporate governance, and more. He succeeds George A. Villasana, the retiring SVP and Chief Legal Officer, who will stay on as a Special Advisor until March 2025. Asbury, a Fortune 500 company, is a large automotive retail and service company in the U.S., with 157 dealerships and a diverse range of automotive products and services.

Asbury Automotive Group (NYSE: ABG) reported a cyber incident affecting services provided by CDK Global, a vendor for many automotive retailers. The attack, identified on June 19, 2024, impacted Asbury's sales, service, inventory, CRM, and accounting functions. Immediate actions were taken to protect systems, and contingency plans are in place to mitigate operational disruptions. However, operations may be slower than usual. Koons Automotive locations and the Clicklane platform remain largely unaffected. The full scope and potential financial impact of the incident are currently unknown, and ongoing assessments are being conducted with CDK Global.

Asbury Automotive Group announced an increase in its share repurchase authorization to $400 million. This expansion reflects Asbury's commitment to a disciplined capital allocation approach. Year-to-date 2024, the company has repurchased about 281,000 shares for $59 million. The expanded program allows Asbury to repurchase shares in various manners, including open market and privately negotiated transactions. Factors influencing repurchase decisions include stock price, economic conditions, and strategic capital uses. Asbury operates 157 new vehicle dealerships, 37 collision repair centers, and offers a range of automotive products and services. The company is recognized on Forbes’ list of America's Best Mid-Sized Companies and by Newsweek and U.S. News & World Report as one of the best workplaces in the retail industry.

Asbury Automotive Group, Inc. (NYSE: ABG) reported a record $4.2 billion in revenue for the first quarter of 2024, with an operating margin of 6.3% and EPS of $7.21 per diluted share. The company saw growth in parts and service revenue by 15%, parts and service gross profit by 18%, and repurchased approximately 240,000 shares for $50 million. Despite a 19% decrease in net income compared to the first quarter of 2023, Asbury Automotive Group highlighted profitable same store preowned volume growth, strong new vehicle profits, and strategic acquisitions driving integration results.