Asbury Q3 Earnings Surpass Estimates, Revenues Rise Y/Y

Asbury Automotive ABG reported third-quarter 2025 adjusted earnings per share of $7.17, which beat the Zacks Consensus Estimate of $6.80 and increased from $6.35 generated in the year-ago period. Better-than-expected gross profits from new vehicle sales, finance and insurance business, as well as parts and service business, resulted in the outperformance. In the reported quarter, revenues amounted to $4.80 billion, which increased nearly 13% year over year and beat the Zacks Consensus Estimate of $4.69 billion.

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

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

Asbury’s Segment Details

In the quarter, new vehicle revenues rose 17% year over year to $2.53 billion, beating the Zacks Consensus Estimate of $2.44 billion. The outperformance was due to the higher-than-expected number of units sold. Retail units sold in the segment totaled 48,070 (up 13% year over year), which topped the consensus mark of 45,535 units. The new vehicle average selling price (“ASP”) was $52,609 (up 4%), which beat the consensus mark of $52,259. Gross profit from the segment was $161 million, up 7% from the prior-year quarter. The metric also surpassed the Zacks Consensus Estimate of $157 million.

Used-vehicle retail revenues rose 7% from the year-ago figure to $1.23 billion but missed the Zacks Consensus Estimate of $1.24 billion due to a lower-than-expected number of units sold. Retail used vehicle units sold in the quarter totaled 37,696 (up 1% year over year), lagging the consensus mark of 39,323. Retail used vehicle ASP was $32,543 (up 6% year over year), which topped the Zacks Consensus Estimate of $31,576. Gross profit from the segment was $61.5 million (up 10% year over year), lagging the Zacks Consensus Estimate of $63 million.

Revenues from the used vehicle wholesale business climbed 27% to $185.5 million and beat the consensus mark of $160 million. Gross profit from the unit jumped 14% to $3.8 million, missing the consensus mark of $4.15 million.

Net revenues from the finance and insurance business amounted to $200.3 million, up 8% from the year-ago quarter. The metric beat the Zacks Consensus Estimate of $187 million. Gross profit was $187.1 million, which was up 9% year over year and beat the Zacks Consensus Estimate of $178 million.

Revenues from the parts and service business were $659.4 million, up from the year-ago quarter’s $593.1 million but missed the Zacks Consensus Estimate of $661 million. Gross profit from this segment was $389.1 million. The figure surpassed the consensus mark of $388 million and rose 9% year over year.

ABG’s Other Tidbits

Selling, general & administrative expenses as a percentage of gross profit rose to 65.7%, which marked an increase of 70 basis points year over year.

As of Sept. 30, 2025, the company had cash and cash equivalents of $32.2 million, down from $69.4 million as of Dec. 31, 2024. It had a long-term debt of $3.6 billion as of Sept. 30, 2025, up from $3.14 billion as of Dec. 31, 2024.

Asbury’s Zacks Rank & Key Picks

ABG carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Cooper-Standard Holdings Inc. CPS, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CPS’ 2025 sales and earnings implies year-over-year growth of 2.5% and 137.8%, respectively. EPS estimates for 2025 and 2026 have improved 36 cents and 23 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for KAR’s fiscal 2025 sales and earnings implies year-over-year growth of 5.6% and 37.7%, respectively. EPS estimates for fiscal 2025 have improved 13 cents in the past 90 days. EPS estimates for fiscal 2026 have improved 13 cents in the past 30 days.

The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.4% and 14.3%, respectively. EPS estimates for 2025 and 2026 have improved 8 cents and 17 cents, respectively, in the past seven days. 

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

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