Asbury Automotive's Q2 Earnings Beat Estimates, Revenues Lag

Asbury Automotive ABG 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.

Asbury Automotive Group, Inc. Price, Consensus and EPS Surprise

Asbury Automotive Group, Inc. price-consensus-eps-surprise-chart | Asbury Automotive Group, Inc. Quote

ABG’s 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.

ABG’s 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.

Zacks Rank & Other Stocks to Consider

LEA currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the auto space are Ferrari N.V. RACE, PHINIA Inc. PHIN and XPeng Inc. XPEV. While RACE and PHIN sport a Zacks Rank #1 (Strong Buy) each at present, XPEV carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for RACE’s fiscal 2025 sales and earnings indicates year-over-year growth of 13.6% and 12.1%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 5 cents each over the past 30 days.

The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 0.58% and 12.44%, respectively. EPS estimates for 2025 and 2026 have improved by 14 cents and 16 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for XPEV’s 2025 sales and earnings indicates year-over-year growth of 102% and 66.7%, respectively. EPS estimates for 2025 have improved 7 cents in the past 90 days. The EPS estimate for 2026 has increased a penny in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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