Can ABG sustain its Q4 momentum into 2025?
4/5/2025 04:15pm
**Asbury Automotive Group (ABG) is poised to sustain its Q4 momentum into 2025**, based on several key indicators:
1. **Strong Financial Performance**: ABG's net income for Q4 2024, was $128.8 million, with a significant year-over-year growth of 132.07%. The total revenue for the same period was $4.5 billion, marking an 18.18% increase year-over-year. This robust financial performance sets a solid foundation for continued growth.
|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|ABG|ABG.N|Asbury Automotive Group|2024 Q1|4.2012E9|1.471E8|7.21|169|
|ABG|ABG.N|Asbury Automotive Group|2024 Q2|4.2462E9|2.81E7|1.39|169|
|ABG|ABG.N|Asbury Automotive Group|2024 Q3|4.2367E9|1.263E8|6.37|169|
|ABG|ABG.N|Asbury Automotive Group|2024 Q4|4.5045E9|1.288E8||169|
|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|ABG|ABG.N|Asbury Automotive Group|2024 Q1|-18.90848952590959|17.27660999916255|-13.859020310633205|169|
|ABG|ABG.N|Asbury Automotive Group|2024 Q2|-85.69246435845214|13.458917835671343|-85.11777301927195|169|
|ABG|ABG.N|Asbury Automotive Group|2024 Q3|-25.354609929078016|15.561071409088429|-22.222222222222214|169|
|ABG|ABG.N|Asbury Automotive Group|2024 Q4|132.07207207207207|18.175617178686675||169|
2. **Positive Market Sentiment**: Despite recent stake reductions by SG Americas Securities LLC, the overall market sentiment remains positive, with analysts setting an average price target of $255, indicating a potential upside from the current price. The consensus rating is "Neutral," suggesting that analysts believe the stock has room to grow.
3. **Strategic Positioning**: ABG's strategic approach to managing debt and its balanced capital structure, with a debt-to-equity ratio of 1.05, positions the company well to navigate potential market challenges. The company's share repurchase programs and management's active buying back of shares also signal confidence in future growth.
4. **Industry Resilience**: Despite facing headwinds due to industry-specific challenges, ABG's ability to adapt and its anticipated growth resumption in 2026 suggest that the company is well-positioned to sustain its momentum.
In conclusion, ABG's strong financials, positive market sentiment, strategic positioning, and resilience within the automotive retail industry all point to the company's potential to sustain its Q4 momentum into 2025.