Asbury Automotive’s Q2 earnings drop by half; shares fall 17%
Second-quarter earnings for Asbury Automotive Group Inc. (NYSE:ABG) declined by almost half, the New York-based company said ahead of today’s opening. For the quarter ended June 30, net income was $10.9 million, or $0.34 per share, compared with $20.6 million, or $0.62 per share, for the same period a year earlier. Analysts had been expecting earnings per share of $0.46.
"The economic environment and low consumer confidence levels in the second quarter presented a challenging backdrop for the automotive retail business. Soft retail sales in our key Florida markets, in particular, resulted in a disproportionate decline in our profitability. The dramatic increase in gas prices added further complexity to the business, causing a rapid shift in customer preference toward fuel-efficient cars, which placed pressure on our new and used vehicle operations,” said Charles R. Oglesby, president and CEO, in a statement.
The news has sent shares of the automotive retailer down 17% to $10.61 at 11:12 a.m. ET. The stock has ranged from $9.76 to $23.52 during the past year.
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