Asbury Automotive Group (NYSE:ABG) Issues Quarterly Earnings Results

Asbury Automotive Group (NYSE:ABG) released its earnings results on Thursday. The company reported $6.67 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $6.70 by ($0.03), FiscalAI reports. Asbury Automotive Group had a return on equity of 14.63% and a net margin of 2.73%.The company had revenue of $4.68 billion during the quarter, compared to analysts’ expectations of $4.93 billion. During the same quarter in the previous year, the company earned $7.26 EPS. The firm’s quarterly revenue was up 3.8% compared to the same quarter last year.

Here are the key takeaways from Asbury Automotive Group’s conference call:

• Asbury reported record fourth-quarter results with $4.7 billion revenue, $793 million gross profit, adjusted EPS $6.67 and Adjusted EBITDA $250 million.
• Leverage improved to a 3.2x transaction-adjusted net leverage (better than forecast), management completed divestitures representing ~$750 million of annualized revenue and repurchased $100 million of stock in 2025 while maintaining ~$927 million of liquidity.
• Used operations showed progress—total used gross profit +6% year‑over‑year and used retail PVRs +18% to $1,749—and parts & service delivered a record Q4 all-store revenue of $658 million, supporting the long-term services thesis.
• The Tekion DMS rollout is expected to drive long-term efficiency but will create near-term headwinds: duplicated DMS costs, implementation and SOX-related expenses will pressure SG&A in the first half of 2026.
• Management expects near-term softness in new-vehicle metrics—SAR may be slightly down and new-vehicle profitability is being “normalized” toward the company’s $2,500–$3,000 PVR range—with first‑half 2026 weakness from weather, incentive/tariff uncertainty and high vehicle transaction prices.

Asbury Automotive Group Stock Up 2.2%

ABG opened at $225.36 on Friday. The firm has a market cap of $4.38 billion, a P/E ratio of 8.98 and a beta of 0.82. The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.30 and a current ratio of 0.99. The business has a 50 day moving average price of $240.11 and a 200 day moving average price of $238.99. Asbury Automotive Group has a twelve month low of $201.68 and a twelve month high of $306.46.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on ABG shares. JPMorgan Chase & Co. increased their price objective on Asbury Automotive Group from $230.00 to $235.00 and gave the stock an “underweight” rating in a report on Wednesday, November 5th. Morgan Stanley set a $230.00 target price on Asbury Automotive Group in a research report on Monday, December 8th. Barclays reduced their price target on Asbury Automotive Group from $250.00 to $230.00 and set a “reduce” rating for the company in a report on Friday. Weiss Ratings upgraded Asbury Automotive Group from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday. Finally, Zacks Research lowered shares of Asbury Automotive Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 11th. Three analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $247.57.

Institutional Trading of Asbury Automotive Group

A number of institutional investors and hedge funds have recently modified their holdings of ABG. Quarry LP boosted its holdings in shares of Asbury Automotive Group by 319.2% during the 3rd quarter. Quarry LP now owns 109 shares of the company’s stock worth $27,000 after buying an additional 83 shares during the period. Osaic Holdings Inc. lifted its position in Asbury Automotive Group by 69.2% during the 2nd quarter. Osaic Holdings Inc. now owns 132 shares of the company’s stock worth $31,000 after acquiring an additional 54 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in Asbury Automotive Group by 64.8% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 206 shares of the company’s stock valued at $49,000 after acquiring an additional 81 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in Asbury Automotive Group by 104.2% during the second quarter. EverSource Wealth Advisors LLC now owns 337 shares of the company’s stock valued at $80,000 after acquiring an additional 172 shares during the period. Finally, Canada Pension Plan Investment Board grew its position in shares of Asbury Automotive Group by 700.0% in the second quarter. Canada Pension Plan Investment Board now owns 800 shares of the company’s stock valued at $191,000 after purchasing an additional 700 shares during the last quarter.

Key Stories Impacting Asbury Automotive Group

Here are the key news stories impacting Asbury Automotive Group this week:

• Positive Sentiment: Management signaled a sustained tech-driven investment plan — Asbury said it will run about $250M of annual capital expenditures through 2027 as the Tekion rollout advances, which investors may view as a driver of long-term operational improvement. Article Title
• Positive Sentiment: Company posted record 2025 revenue and year-over-year revenue growth, a sign of topline momentum despite margin pressures. Article Title
• Neutral Sentiment: Earnings materials and the full call transcript provide management commentary and slides for investors to model the Tekion rollout timing and capex phasing; these details will shape how quickly benefits offset higher spending. Article Title
• Negative Sentiment: Q4 results missed consensus: EPS of $6.67 missed estimates by $0.03 and revenue came in below consensus (reported $4.68B vs. estimates near $4.9B), driven in part by weaker gross profit on new-vehicle sales — a short-term profitability headwind. Article Title
• Negative Sentiment: EPS declined vs. prior-year quarter (from $7.26 to $6.67), and margin compression increases near-term execution risk as higher capex ramps — factors that could cap multiples until margins stabilize. Article Title

About Asbury Automotive Group

Asbury Automotive Group, Inc (NYSE:ABG) is one of the largest automotive retailers in the United States. Headquartered in Duluth, Georgia, the company operates a network of franchised dealerships representing a diverse portfolio of automotive brands. Its core business activities include the sale of new and pre-owned vehicles, as well as the provision of vehicle finance, insurance and protection products to retail customers.

In addition to retail sales, Asbury offers a comprehensive suite of after-sales services, from scheduled maintenance and certified collision repair to parts distribution.