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Auto Stock Roundup: ABG's $3.2B Deal, THO and KMX's Quarterly Results & More

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04.10.2021

Last week, auto biggies released U.S. auto sales data for the third quarter of 2021. Vehicle sales took a nasty hit amid aggravating chip crunch and low inventories. U.S. auto giant General Motors GM suffered the worst blow, with third-quarter sales slumping 33% year over year to 446,997 units. Ford will report delivery numbers today. Japan-based automakers Honda and Nissan witnessed a year-over-year sales decline of 11% and 10%, respectively. Toyota was an outlier as its sales edged up 1.4% for the quarter under review. Volkswagen — Germany’s #1 automaker — recorded an 8.1% drop in U.S. vehicle sales during the three months ended Sep 30. Meanwhile, its close peer BMW AG saw a 4.4% increase in deliveries. Meanwhile, per JD Power, the average price of a new vehicle hit a new record of $42,802 last month, breaking August’s record of $41,528.

Asbury Automotive Group ABG announced a mega deal to acquire Larry H. Miller Dealerships, the eighth largest dealership in the United States, and Total Care Auto (TCA), powered by Landcar, for $3.2 billion. The acquisition of Larry H. Miller Dealerships seeks to add nearly $5.7 billion in Asbury’s expected annualized revenues, giving the company an edge to execute its five-year plan to generate $20 billion in annual revenues by 2025. The acquired assets will include 54 new and seven used-vehicle dealerships along with 11 collision centers. The deal is also likely to enhance the scope of Asbury’s Clicklane omni-channel platform. Meanwhile, the buyout of TCA presents Asbury with an opportunity to enter the profitable F&I business.

Thor Industries THO posted fourth-quarter fiscal 2021 (ended Jul 31, 2021) adjusted earnings of $4.12 per share, which beat the Zacks Consensus Estimate of $2.91 and jumped 92.5% year over year.........

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