Eagers Automotive Shares Hit New Low as Selloff Deepens After Margin Guidance Overshadows Record Revenue
The dealership group's stock has dropped about 51% over the past year despite forecast record revenue, as margins face pressure from rising costs and interest rates.
SYDNEY — Shares of Eagers Automotive Ltd. fell almost 5% on Monday to a fresh 52-week low, extending a selloff that began with the car dealership group's trading update last week.
Eagers shares lost 81 cents, or 4.99%, to A$15.41, the session low. About 1.5 million shares changed hands, valuing the company at about A$4.4 billion.
No new announcement was found on Monday.
Last week's slump
On Nov. 5, Eagers was the worst performer on the ASX 200, falling 13.22% to A$16.61 on volume more than six times average and setting a 52-week low of A$15.77 intraday. Monday's close pushed the stock below that level.
Record revenue, thinner margins
Eagers expects record 2026 revenue of A$17.3 billion to A$17.5 billion, up at least 30%, but underlying return on sales is guided to 2.8% to 3.0%, below the 3.1% reported for the first half.
Revenue is growing, Canada is adding scale and a BYD deal lifts ownership of an electric-vehicle retail arm, but Australian costs are rising.
Rate pressure
UBS has warned that rising interest rates and cost pressures could dampen demand and weigh on earnings visibility.
The shares are down about 51% over the past year.
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