04/09/2024 06:24

Eagers Automotive (APE) $10.76

Eagers (APE) is Australia's largest car dealer and is coming off the back of a tough 12-months, with the shares trading down from ~$16.  New car sales have been weak, amplified by too much inventory (after having too little during Covid), particularly within EVs. As is well known by now, EV sales have been weaker than many expected, including Eagers and this has been a headwind for them.

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22/05/2024 16:43

Eagers Automotive (APE) $10.36

APE -15.01%: the car retailer hosted their AGM today with some soft trading commentary sending the stock to its lowest level since 2022. Revenue to April is running 18% higher than 1H23 which is well and truly on track to meet consensus expectations for the first half. The issue lies with Profit Before Tax (PBT) with the company saying they expect PBT to fall 15% in the half, a ~15% miss to consensus.

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10/05/2024 09:21

Eagers Automotive Ltd (APE) $11.96

APE fell 3.2% yesterday, actually placing it in the top half of the main retailers on Thursday. When we buy sector sell-offs, we prefer to buy the strength, and with APE making 52-week lows this month while trading down 17% year-to-date, it definitely doesn’t fit this description.

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25/05/2023 08:51

Eagers Automotive Ltd (APE) $12.85

New and used vehicle distributor APE tumbled -4.9% yesterday surrendering some of its previous impressive gains through 2023. This is one of our preferred exposures to the Australian consumer but with sentiment clearly bearish we are likely to adopt a patient stance before considering buying.

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23/02/2023 16:45

Eagers Automotive (APE) $13.00

APE +8.97%: Topped the leader board today with FY22 results that met expectations while their guidance for FY23 was stronger than expected. Revenue of $8.54bn was largely inline with consensus while underlying profit before tax of $405m was around a 2% beat driven by better margins while the dividend of 71cps compared well to the 60cps expected.

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18/08/2022 09:30

AP Eagers (APE) $13.46

Car dealership business APE advanced +1.4% on Wednesday as retail stocks rallied strongly, in 2022 the business has struggled to meet strong demand due to dire supply issues from a number of car makers, the market imbalance due to a computer chip shortage has gone berserk with 2-year old cars selling for more than when they were new! We like this quality business although the demand side of the curve will need to be monitored carefully as interest rate hikes start to influence the consumer, or not as the case may be.

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12/07/2022 17:06

Eagers Automotive (APE) $10.91

APE +3.31%: the Australian & NZ auto dealership company saw shares trade higher today after a strong first-half update. Underlying pre-tax profit is expected to come in around $195m, around 5% above guidance provided in May of $183-189m. The car market has been struggling to get its hands on supply, so Eagers now has a record new car order book while cost-out programs are further supporting earnings. They completed...

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18/11/2021 09:40

AP Eagers (APE) $14.20

Car dealership business APE has struggled to meet strong demand due to dire supply issues from a number of car makers – computer chips are an integral issue here. We like this business and its quality is reflected by how well its performed during the recent tough conditions. We can see fresh highs for APE into 2022 but the demand side of the curve...

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21/05/2021 09:29

Eagers Automotive (APE) $15.40

Automotive business APE has benefitted through COVID as the car market has tightened up in Australia  e.g. many 2nd hand cars have actually increased in value ~20% as a dearth of new vehicles is arriving on our shores due to COVID created supply chain issues, a very obvious theme if you’re in search of a Toyota Landcruiser!

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19/01/2021 15:37

AP Eagers (APE) $13.21

Motor vehicle business APE has been the star performer in the sector more than doubling over the last 6-months helped by its recent guidance beat where its now anticipating a ~$200m profit before tax. The company has enjoyed the rebound in vehicle sales which looks well positioned to continue as lease costs remain extremely low.

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