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Why Is Asbury Automotive (ABG) Up 15.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Asbury Automotive Group (ABG - Free Report) . Shares have added about 15.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Asbury Automotive due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Asbury Automotive Group, Inc. before we dive into how investors and analysts have reacted as of late.
Asbury Automotive's Q2 Earnings Beat Estimates, Revenues Lag
Asbury reported second-quarter 2025 adjusted earnings per share of $7.43, which topped the Zacks Consensus Estimate of $6.82 and increased from $6.40 generated in the year-ago period. Better-than-expected gross profits from new and used vehicle sales resulted in the outperformance. In the reported quarter, revenues amounted to $4.37 billion, which increased nearly 3% year over year but lagged the Zacks Consensus Estimate of $4.45 billion.
Segment Details
In the quarter, new vehicle revenues rose 6% year over year to $2.30 billion, missing the Zacks Consensus Estimate of $2.31 billion. The underperformance was due to the lower-than-expected selling price and the number of units sold. Retail units sold in the segment totaled 44,437 (up 4% year over year), which lagged the consensus mark of 45,291 units. The new vehicle average selling price (“ASP”) was $51,846 (up 2%), which missed the consensus mark of $52,011. Gross profit from the segment was $160 million, up 3% from the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $148 million.
Used-vehicle retail revenues declined 3% from the year-ago figure to $1.13 billion and missed the Zacks Consensus Estimate of $1.15 billion due to lower-than-expected ASP and the number of units sold. Retail used vehicle units sold in the quarter totaled 36,233 (down 6% year over year), lagging the consensus mark of 36,382 units. Retail used vehicle ASP was $31,171 (up 3% year over year), which missed the Zacks Consensus Estimate of $31,207. Gross profit from the segment was $62.3 million (up 11% year over year), beating the Zacks Consensus Estimate of $57 million.
Revenues from the used vehicle wholesale business climbed 11% to $156.3 million and beat the consensus mark of $153 million. Gross profit from the unit jumped 43% to $6.6 million, surpassing the consensus mark of $2.72 million.
Net revenues from the finance and insurance business amounted to $182 million, down 5% from the year-ago quarter. The metric also lagged the Zacks Consensus Estimate of $203 million. Gross profit was $168.1 million, which fell 4% year over year and missed the Zacks Consensus Estimate of $170 million.
Revenues from the parts and service business were $601.5 million, up from the year-ago quarter’s $580.9 million and missed the Zacks Consensus Estimate of $625 million. Gross profit from this segment was $354.8 million. The figure lagged the consensus mark of $359 million but rose 4% year over year.
Other Tidbits
Selling, general & administrative expenses as a percentage of gross profit rose to 63.2%, which marked a decrease of 198 basis points year over year.
As of June 30, 2025, the company had cash and cash equivalents of $54.8 million, down from $69.4 million as of Dec. 31, 2024. It had a long-term debt of $3.05 billion as of June 30, 2025, down from $3.14 billion as of Dec. 31, 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Asbury Automotive has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Asbury Automotive has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Asbury Automotive is part of the Zacks Automotive - Retail and Whole Sales industry. Over the past month, Sonic Automotive (SAH - Free Report) , a stock from the same industry, has gained 17.1%. The company reported its results for the quarter ended June 2025 more than a month ago.
Sonic Automotive reported revenues of $3.66 billion in the last reported quarter, representing a year-over-year change of +5.9%. EPS of $2.19 for the same period compares with $1.47 a year ago.
For the current quarter, Sonic Automotive is expected to post earnings of $1.73 per share, indicating a change of +37.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +9% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Sonic Automotive. Also, the stock has a VGM Score of A.
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Why Is Asbury Automotive (ABG) Up 15.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Asbury Automotive Group (ABG - Free Report) . Shares have added about 15.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Asbury Automotive due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Asbury Automotive Group, Inc. before we dive into how investors and analysts have reacted as of late.
Asbury Automotive's Q2 Earnings Beat Estimates, Revenues Lag
Asbury reported second-quarter 2025 adjusted earnings per share of $7.43, which topped the Zacks Consensus Estimate of $6.82 and increased from $6.40 generated in the year-ago period. Better-than-expected gross profits from new and used vehicle sales resulted in the outperformance. In the reported quarter, revenues amounted to $4.37 billion, which increased nearly 3% year over year but lagged the Zacks Consensus Estimate of $4.45 billion.
Segment Details
In the quarter, new vehicle revenues rose 6% year over year to $2.30 billion, missing the Zacks Consensus Estimate of $2.31 billion. The underperformance was due to the lower-than-expected selling price and the number of units sold. Retail units sold in the segment totaled 44,437 (up 4% year over year), which lagged the consensus mark of 45,291 units. The new vehicle average selling price (“ASP”) was $51,846 (up 2%), which missed the consensus mark of $52,011. Gross profit from the segment was $160 million, up 3% from the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $148 million.
Used-vehicle retail revenues declined 3% from the year-ago figure to $1.13 billion and missed the Zacks Consensus Estimate of $1.15 billion due to lower-than-expected ASP and the number of units sold. Retail used vehicle units sold in the quarter totaled 36,233 (down 6% year over year), lagging the consensus mark of 36,382 units. Retail used vehicle ASP was $31,171 (up 3% year over year), which missed the Zacks Consensus Estimate of $31,207. Gross profit from the segment was $62.3 million (up 11% year over year), beating the Zacks Consensus Estimate of $57 million.
Revenues from the used vehicle wholesale business climbed 11% to $156.3 million and beat the consensus mark of $153 million. Gross profit from the unit jumped 43% to $6.6 million, surpassing the consensus mark of $2.72 million.
Net revenues from the finance and insurance business amounted to $182 million, down 5% from the year-ago quarter. The metric also lagged the Zacks Consensus Estimate of $203 million. Gross profit was $168.1 million, which fell 4% year over year and missed the Zacks Consensus Estimate of $170 million.
Revenues from the parts and service business were $601.5 million, up from the year-ago quarter’s $580.9 million and missed the Zacks Consensus Estimate of $625 million. Gross profit from this segment was $354.8 million. The figure lagged the consensus mark of $359 million but rose 4% year over year.
Other Tidbits
Selling, general & administrative expenses as a percentage of gross profit rose to 63.2%, which marked a decrease of 198 basis points year over year.
As of June 30, 2025, the company had cash and cash equivalents of $54.8 million, down from $69.4 million as of Dec. 31, 2024. It had a long-term debt of $3.05 billion as of June 30, 2025, down from $3.14 billion as of Dec. 31, 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Asbury Automotive has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Asbury Automotive has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Asbury Automotive is part of the Zacks Automotive - Retail and Whole Sales industry. Over the past month, Sonic Automotive (SAH - Free Report) , a stock from the same industry, has gained 17.1%. The company reported its results for the quarter ended June 2025 more than a month ago.
Sonic Automotive reported revenues of $3.66 billion in the last reported quarter, representing a year-over-year change of +5.9%. EPS of $2.19 for the same period compares with $1.47 a year ago.
For the current quarter, Sonic Automotive is expected to post earnings of $1.73 per share, indicating a change of +37.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +9% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Sonic Automotive. Also, the stock has a VGM Score of A.