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Asbury Automotive's Q1 Earnings Lag Estimates, Revenues Decline Y/Y

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Asbury Automotive (ABG - Free Report) reported first-quarter 2025 adjusted earnings per share of $6.82, which missed the Zacks Consensus Estimate of $6.84 and decreased from $7.21 generated in the year-ago period. Lower-than-expected sales and gross profit from the new and used vehicle business and parts and service business resulted in underperformance. In the reported quarter, revenues amounted to $4.15 billion, which decreased 1.2% year over year and lagged the Zacks Consensus Estimate of $4.4 billion.

ABG’s Segment Details

In the quarter, new vehicle revenues rose 4% year over year to $2.14 billion, missing the Zacks Consensus Estimate of $2.24 billion. The underperformance was due to the lower-than-expected number of units sold. Retail units sold in the segment totaled 41,496 (up 2% year over year), which lagged the consensus mark of 43,854 units. New vehicle average selling price (“ASP”) was $51,525 (up 2%), which surpassed the consensus mark of $51,133. Gross profit from the segment was $143.1 million, down 12% from the prior-year quarter. The metric also missed the Zacks Consensus Estimate of $151 million.

Used-vehicle retail revenues declined 9% from the year-ago figure to $1.08 billion and missed the Zacks Consensus Estimate of $1.2 billion due to lower-than-expected ASP and the number of units sold. Retail used vehicle units sold in the quarter totaled 35,415 (down 10% year over year), lagging the consensus mark of 39,161 units. Retail used vehicle ASP was $30,465 (up 1% year over year), which missed the Zacks Consensus Estimate of $30,476. Gross profit from the segment was $56.2 million (down 14% year over year), missing the Zacks Consensus Estimate of $59 million.

Revenues from the used vehicle wholesale business slumped 5% to $157 million and met the consensus mark. Gross profit from the unit jumped 21% to $8.4 million, surpassing the consensus mark of $2.75 million.

Net revenues from the finance and insurance business amounted to $187 million, down 1% from the year-ago quarter. The metric also lagged the Zacks Consensus Estimate of $189 million. Gross profit was $173.9 million, which fell 4% year over year but exceeded the Zacks Consensus Estimate of $165 million.

Revenues from the parts and service business were $587.6 million, down from the year-ago quarter’s $590.4 million and missed the Zacks Consensus Estimate of $630 million. Gross profit from this segment was $342.7 million. The figure lagged the consensus mark of $359 million but rose 3% year over year.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

ABG’s Other Tidbits

Selling, general & administrative expenses as a percentage of gross profit rose to 63%, which marked an increase of 54 basis points year over year.

As of March 31, 2025, the company had cash and cash equivalents of $124.6 million, up from $69.4 million as of Dec. 31, 2024. It had a long-term debt of $3.13 billion as of March 31, 2025, down from $3.14 billion as of Dec. 31, 2024.

In the first quarter of 2025, ABG did not repurchase any shares.

Asbury currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Big Releases From the Auto Space

Sonic Automotive, Inc.(SAH - Free Report) posted first-quarter 2025 adjusted earnings per share of $1.48, which topped the Zacks Consensus Estimate of $1.46 and improved 8.82% from the year-ago quarter. Total revenues amounted to $3.65 billion, which surpassed the Zacks Consensus Estimate of $3.54 billion and rose from the year-ago quarter’s $3.38 billion.

SAH had cash & cash equivalents of $64.6 million as of March 31, 2025, up from $44 million as of Dec. 31, 2024. Long-term debt was $1.49 billion as of March 31, 2025, down from $1.51 billion as of Dec. 31, 2024.

AutoNation, Inc. (AN - Free Report) reported first-quarter 2025 adjusted earnings of $4.68 per share, which increased 4% year over year and beat the Zacks Consensus Estimate of $4.35, primarily on the back of better-than-expected revenues and profits from retail new and used vehicles. In the quarter under review, revenues amounted to $6.69 billion, which surpassed the Zacks Consensus Estimate of $6.57 billion and rose from $6.48 billion reported in the first quarter of 2024.

As of March 31, 2025, AutoNation’s liquidity was $1.6 billion, including $71 million in cash and nearly $1 billion available under its revolving credit facility. The firm’s inventory was valued at $3.23 billion. At the end of the first quarter, non-vehicle debt was $3.96 billion.

Group 1 Automotive (GPI - Free Report) reported first-quarter 2025 adjusted earnings per share of $10.17, which beat the Zacks Consensus Estimate of $9.68 and rose 7.17% year over year. The automotive retailer registered net sales of $5.51 billion, beating the Zacks Consensus Estimate of $5.34 billion. The top line also rose from the year-ago quarter’s $4.47 billion.

Group 1 had cash and cash equivalents of $70.5 million as of March 31, 2025, up from $34.4 million as of Dec. 31, 2024. Total debt was $2.8 billion as of March 31, 2025, down from $2.91 billion as of Dec. 31, 2024.

 

 

 


 

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