Asbury Automotive Group: What Is Their Expansion Strategy Focused on Diverse Revenue Streams? 

The Asbury Automotive Group has reported mixed results for the second quarter of 2024, which reflect both a resilient operational performance and significant challenges due to a system outage. A detailed analysis highlights both the strengths and areas of concern for the company during this period. Asbury faced a major operational disruption beginning on June 19, due to an outage with their dealer management system (DMS) provided by CDK. This outage, which lasted until early July, significantly impacted their sales processes across all stores, except those operating under a different DMS. The impact was substantial with approximately 100,000 repair orders needing recreation into the system post-outage, and an estimated dip in diluted earnings per share by $0.95 to $1.15. The effect was particularly significant on new and used vehicle sales, and the finance and insurance (F&I) sectors, alongside parts and services volumes.