It has been about a month since the last earnings report for Asbury Automotive Group (ABG). Shares have lost about 1.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Asbury Automotive due for a breakout? Well, first let's take a quick look at its latest 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's Q3 Earnings Beat Estimates
Asbury 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.
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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Asbury Automotive has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. 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. Interestingly, 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, AutoNation (AN), a stock from the same industry, has gained 7.2%. The company reported its results for the quarter ended September 2025 more than a month ago.
AutoNation reported revenues of $7.04 billion in the last reported quarter, representing a year-over-year change of +6.9%. EPS of $5.01 for the same period compares with $4.02 a year ago.
For the current quarter, AutoNation is expected to post earnings of $4.93 per share, indicating a change of -0.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for AutoNation. Also, the stock has a VGM Score of B.
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Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report AutoNation, Inc. (AN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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