DULUTH, Ga. (AP) ¿ Shares of Asbury Automotive Group Inc. soared Wednesday, after the automotive retailer reported a steep drop in first-quarter profit, but still managed to beat Wall Street predictions. In morning trading, Asbury shares rose $1.15, or 15 percent, to $9.06 after peaking at $9.09 earlier in the day. Over the past 52 weeks, the company's shares have traded between $1.60 and $18. Asbury earned $300,000, or 1 cent per share, compared with $10.1 million, or 31 cents per share, in the same quarter last year. Earnings from continuing operations fell to $2.2 million, or 7 cents per share, from $10.4 million, or 32 cents per share, in the year-ago period. Total revenue fell 30 percent to $838.3 million from $1.20 billion, as the total number of new vehicles sold dropped 38 percent to 14,217. Analysts polled by Thomson Reuters expected a loss of 1 cent per share on $918.5 million in revenue. Company officials credited the better-than-expected results to cost-cutting efforts including its corporate relocation, elimination of its regional management structure, along with productivity and profitability improvements at its dealerships. Asbury said the moves allowed it to reduce same-store operating expenses by a combined $34 million compared with the first quarter of 2008.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Opinion
Tesla's Stock Is Finally Pricing in a Lot of its Business Risks
Following their recent tumble, the risks and potential rewards presented by Tesla's stock might finally be in balance, or at least close to it.
Pinterest's Earnings Report Doesn't Justify Pressing the Panic Button
The social media platform's guidance isn't that bad in light of its spending and growth strategy, and some of its first-quarter numbers were pretty solid.
Cisco: Despite Another Strong Quarter, Stock Could Stall
High valuations and earnings growth supported primarily by share repurchases suggest that Cisco's stock may take a break from its recent run-up.
Disney's Earnings: A Five-Year Growth Story Is Unfolding
Should Disney execute well on its transition plan over the next few years, an investment in the stock at current levels will likely be properly justified, proving the forward earnings multiple of 20x to be overly conservative.