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Research Alert: Abg: Top Line Shortfall Causes Miss, But Margin Improvement Positive
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Asbury Automotive Group (ABG) posted Q1 2026 adjusted EPS of $5.37 vs. $6.82 prior year (-24% Y/Y), short of the $5.62 consensus. Revenue fell 1% to $4.11B ($260M below consensus) and gross margin expanded 20 bps to 17.7% (40 bps above consensus). The revenue shortfall was led by the Finance & Insurance (-4%), New (-2%), and Used Vehicle (-2%) segments, with only Parts & Service (+7%) showing growth. Looking at sales volumes, both new (-5%) and used vehicles (-6%) posted unit declines, but average price realizations were higher (+4% for new and +5% for used). ABG's gross margin improvement was led by the Used Vehicle (+60 bps) segment, partially offset by flat Parts & Service margin and weaker New Vehicle margin (-60 bps). In Q1, ABG repurchased 678K shares for a total of $147M. The quarter marked ABG's first earnings miss in the last six quarters. ABG does not provide formal guidance, but we were at least encouraged by its margin performance. ABG shares are currently trading down 1% in pre-market activity.
$ABG
Research
Research Alert: Hlt: Strong Q1 Results Offset By Weak Q2 Profit Outlook
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:HLT posted Q1 adj. EPS of $2.01 (+16.8% Y/Y), beating the $1.97 consensus, while total revenue of $2.94B (+9.0% Y/Y) was in line with estimates. Revenue per available room (RevPAR) growth accelerated 110 bps to +3.6%, led by occupancy gains (+140 bps to 67.4%) and average daily rate increases (+1.5% Y/Y), with broad-based strength across regions led by Europe (+6.9%) and Asia Pacific (+4.7%). Development momentum remained robust with 26,200 new rooms approved and the launch of Select by Hilton expanding into 26 new countries, positioning HLT well for continued growth. Despite raising systemwide RevPAR guidance to 2%-3% from 1%-2%, Q2 adj. EBITDA guidance ($1,015M-$1,035M) disappointed vs. the $1,081M consensus. We view the profit guidance as disappointing given the raised RevPAR outlook, suggesting consensus estimates could be too high. In our view, while strong demand trends and World Cup benefits could drive RevPAR outperformance, the guidance disconnect raises concerns about margin expansion potential.
$HLT
Research
Research Alert: Incy Reports Solid Q1, Driven By Diversified Growth And Pipeline Advancements
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Incyte delivered robust Q1 2026 results with total revenue of $1.27B (+21% Y/Y) and net sales of $1.10B (+20% Y/Y), significantly above expectations. Strong performance was driven by effective commercial execution across the diversified portfolio, with Jakafi maintaining momentum at $758M (+7% Y/Y) and Opzelura continuing impressive growth at $143M (+20% Y/Y). We view the exceptional hematology and oncology portfolio growth of $204M (+116% Y/Y), led by Niktimvo, Monjuvi, and Zynyz, as a critical strategic diversification beyond Jakafi ahead of the 2029 patent cliff. The company reaffirmed full-year 2026 guidance across all categories, expecting total net sales of $4.77B-$4.94B. We believe Incyte's advanced pipeline, with 10 Phase 3 studies including positive povorcitinib results in vitiligo and the pivotal DAWN-303 KRASG12D inhibitor trial, positions the company well for long-term growth under CEO Bill Meury's strategic focus on high-potential assets.
$INCY