Asbury Automotive Group (NYSE:ABG) Issues Earnings Results

Asbury Automotive Group (NYSE:ABG) announced its earnings results on Tuesday. The company reported $6.82 EPS for the quarter, topping analysts’ consensus estimates of $6.31 by $0.51, FiscalAI reports. The business had revenue of $4.38 billion during the quarter, compared to the consensus estimate of $4.49 billion. Asbury Automotive Group had a net margin of 3.05% and a return on equity of 13.39%. The firm’s revenue was up .3% on a year-over-year basis. During the same period in the previous year, the company posted $7.43 earnings per share.

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

• Tekion rollout reached more than 70% of stores and is expected to be completed by October 2026. Mature locations are showing improved productivity, including double-digit gains in units per salesperson, F&I manager productivity, and dollars per technician.
• Second-quarter revenue was $4.4 billion, with adjusted EPS of $6.82, or $7.48 excluding a $0.66 per-share non-cash TotalCare Auto deferral impact. Same-store new vehicle units declined 6%, while new-vehicle PBRs appeared to be approaching normalized levels.
• Management is shifting toward higher used-vehicle volume while maintaining healthy profitability; used retail PBR increased 5% sequentially to $1,927. Additional off-lease inventory and auction purchases are expected to support volume growth beginning in the fourth quarter.
• Parts and service results are expected to improve as more stores mature on Tekion, with total same-store fixed gross profit up 4% in June and low- to mid-single-digit customer-pay growth viewed as achievable in the third quarter.
• Asbury repurchased $278 million of shares year-to-date, reducing its ending-2025 share count by 7%, but transaction-adjusted net leverage rose to 3.4 times. Management expects to return to its 3.0-times leverage target in early to mid-2027, while the third quarter will carry heavier Tekion implementation costs.

Asbury Automotive Group Stock Performance

Asbury Automotive Group stock traded up $10.82 during mid-day trading on Wednesday, reaching $251.81. 59,881 shares of the company traded hands, compared to its average volume of 245,827. The firm’s fifty day moving average is $203.06 and its two-hundred day moving average is $209.50. The company has a market capitalization of $4.69 billion, a price-to-earnings ratio of 8.96, a price-to-earnings-growth ratio of 1.30 and a beta of 0.74. Asbury Automotive Group has a fifty-two week low of $172.01 and a fifty-two week high of $263.38. The company has a debt-to-equity ratio of 0.78, a current ratio of 0.94 and a quick ratio of 0.29.

More Asbury Automotive Group News

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

• Positive Sentiment: Adjusted earnings exceeded expectations. ABG reported quarterly EPS of $6.82, ahead of the roughly $6.31–$6.30 consensus estimate. The beat provides support for the stock despite a challenging comparison with last year. Asbury Automotive Group Surpasses Q2 Earnings Estimates
• Positive Sentiment: Aggressive buybacks are boosting shareholder returns. The company repurchased approximately 668,000 shares for $131 million during the quarter, reducing its share count and signaling management’s confidence in ABG’s valuation. Asbury Automotive Group Is Up After Q2 Beat and Aggressive Buybacks
• Positive Sentiment: Used-vehicle profitability improved. Used retail gross profit per unit rose 16% to $2,002, while total gross profit reached approximately $753 million. These trends suggest that used-vehicle operations are helping offset pressure in other parts of the dealership business. Asbury Automotive Q2 Revenue Reaches $4.4 Billion as Net Income Falls
• Neutral Sentiment: Revenue was broadly stable but below estimates. Quarterly revenue was about $4.38 billion, up only 0.3% year over year and below the $4.49 billion analyst consensus. The result points to limited sales growth even as earnings benefited from margins and cost management. Asbury Automotive Group Earnings Report
• Negative Sentiment: GAAP profitability declined. Net income fell to approximately $115 million from $153 million a year earlier, while reported diluted EPS declined from $7.76 to $6.25 on a GAAP basis. Investors must weigh the adjusted EPS beat against weaker underlying year-over-year earnings. Asbury Automotive Q2 Revenue Reaches $4.4 Billion as Net Income Falls

Insider Activity at Asbury Automotive Group

In related news, Director B. Christopher Disantis acquired 157 shares of the stock in a transaction dated Wednesday, May 20th. The stock was acquired at an average cost of $182.31 per share, for a total transaction of $28,622.67. Following the completion of the purchase, the director owned 6,400 shares of the company’s stock, valued at approximately $1,166,784. This represents a 2.51% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.75% of the company’s stock.

Hedge Funds Weigh In On Asbury Automotive Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Osaic Holdings Inc. raised its stake in shares of Asbury Automotive Group by 69.2% in the second quarter. Osaic Holdings Inc. now owns 132 shares of the company’s stock worth $31,000 after purchasing an additional 54 shares during the last quarter. Lazard Asset Management LLC increased its holdings in Asbury Automotive Group by 0.8% in the 2nd quarter. Lazard Asset Management LLC now owns 9,375 shares of the company’s stock worth $2,236,000 after buying an additional 71 shares during the period. Northwestern Mutual Wealth Management Co. increased its holdings in Asbury Automotive Group by 64.8% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 206 shares of the company’s stock worth $49,000 after buying an additional 81 shares during the period. Quarry LP raised its position in 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 last quarter. Finally, Los Angeles Capital Management LLC purchased a new position in Asbury Automotive Group during the 4th quarter worth approximately $25,000.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the stock. Citigroup reduced their price objective on shares of Asbury Automotive Group from $260.00 to $212.00 and set a “neutral” rating for the company in a research note on Wednesday, April 8th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Asbury Automotive Group in a report on Friday. JPMorgan Chase & Co. reduced their price target on Asbury Automotive Group from $235.00 to $220.00 and set an “underweight” rating on the stock in a research report on Thursday, May 7th. Barclays set a $265.00 price objective on Asbury Automotive Group in a report on Wednesday. Finally, Morgan Stanley set a $220.00 price objective on Asbury Automotive Group in a research report on Thursday, May 7th. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $240.00.

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.