Asbury Automotive Group ABG shares are trading higher Thursday after the company reported strong fourth-quarter financial results that exceeded analyst expectations.

What To Know: The automotive retailer posted adjusted earnings per share of $7.26, beating the consensus estimate of $6.04. Revenue for the quarter reached a record $4.505 billion, surpassing expectations of $4.164 billion and marking an 18% increase from the previous year.

The company also reported record Parts & Service gross profit of $340 million, up 19% year-over-year. Same-store Parts & Service gross profit grew by 11%, while same-store revenue rose 6%. Despite a decline in gross margin and used vehicle retail profitability, Asbury managed to improve its SG&A costs as a percentage of gross profit for the second consecutive quarter. The company attributed its strong performance to operational efficiency and strategic investments in technology and workforce development.

For 2024, Asbury reported a net income of $430 million ($21.50 per share), down from $603 million ($28.74 per share) in 2023. However, total revenue for the year hit a record $17.2 billion, reflecting a 16% increase. The company also repurchased approximately 830,000 shares for $183 million during the year, with $276 million remaining under its repurchase authorization.

ABG Price Action: Asbury Automotive shares were up 11.1% at $304.70 at the time of writing, according to Benzinga pro.

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