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Research Alert: Abg: Top Line Shortfall Causes Miss, But Margin Improvement Positive

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-- 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.

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Research Alert: Pentair: Q1 Results Top Expectations, Eps Outlook Lifted

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UAE Exit From OPEC, OPEC+ Removes Key Pillar of Market Control, Rystad Energy Says

The United Arab Emirates's departure from the Organization of the Petroleum Exporting Countries and OPEC+ removes a key pillar supporting the group's ability to manage global oil markets, Rystad Energy said in a note Tuesday."Losing a member with 4.8 million barrels per day of capacity, and the ambition to produce more, takes a real tool out of the group's hands," analyst Jorge Leon said.The timing also signals where the oil market is heading. With demand nearing a peak, the calculation for producers with low-cost barrels is quickly changing, and waiting under a quota system can start to look like leaving money on the table, he added.As a result, Saudi Arabia is left doing more of the heavy lifting to maintain price stability, while the market loses one of its remaining shock absorbers, Leon said.In the short term, the impact may be limited due to ongoing disruption in the Strait of Hormuz and overall geopolitical tensions but the longer term effects would be more consequential. "A structurally weaker OPEC, with less spare capacity concentrated within the group, will find it increasingly difficult to calibrate supply and stabilize prices," the analyst said.The UAE is set to leave OPEC and OPEC+ on May 1, the Emirates News Agency said earlier Tuesday.