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

Asbury Automotive Group (NYSE:ABG) announced its earnings results on Tuesday. The company reported $6.82 EPS for the quarter, beating analysts’ consensus estimates of $6.31 by $0.51, FiscalAI reports. The business had revenue of $4.38 billion during the quarter, compared to analysts’ expectations of $4.49 billion. Asbury Automotive Group had a return on equity of 12.74% and a net margin of 2.83%.The business’s revenue was up .3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $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 Trading Down 5.7%

Asbury Automotive Group stock traded down $14.12 during midday trading on Thursday, hitting $234.14. 55,801 shares of the stock were exchanged, compared to its average volume of 248,954. Asbury Automotive Group has a fifty-two week low of $172.01 and a fifty-two week high of $263.38. The stock has a market capitalization of $4.36 billion, a price-to-earnings ratio of 8.74, a PEG ratio of 1.38 and a beta of 0.74. The stock’s 50-day simple moving average is $204.37 and its 200 day simple moving average is $209.48. The company has a current ratio of 0.94, a quick ratio of 0.29 and a debt-to-equity ratio of 0.78.

Insiders Place Their Bets

In other news, Director B. Christopher Disantis bought 157 shares of the firm’s stock in a transaction on Wednesday, May 20th. The shares were bought at an average cost of $182.31 per share, for a total transaction of $28,622.67. Following the acquisition, the director directly owned 6,400 shares of the company’s stock, valued at $1,166,784. This trade represents a 2.51% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. 0.75% of the stock is owned by insiders.

Institutional Trading of Asbury Automotive Group

Several institutional investors have recently made changes to their positions in the company. Los Angeles Capital Management LLC purchased a new position in Asbury Automotive Group in the fourth quarter worth approximately $25,000. Quarry LP increased its position 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 purchasing an additional 83 shares during the last quarter. Osaic Holdings Inc. boosted its stake in Asbury Automotive Group by 69.2% during the second quarter. Osaic Holdings Inc. now owns 132 shares of the company’s stock worth $31,000 after buying an additional 54 shares during the period. Northwestern Mutual Wealth Management Co. boosted its stake 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 worth $49,000 after buying an additional 81 shares during the period. Finally, EverSource Wealth Advisors LLC increased its position in shares of 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 last quarter.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Asbury Automotive Group in a research note on Friday, July 24th. Stephens restated an “overweight” rating and set a $242.00 price target on shares of Asbury Automotive Group in a research report on Tuesday, June 2nd. UBS Group set a $250.00 price target on Asbury Automotive Group in a research report on Wednesday. Citigroup cut their price target on Asbury Automotive Group from $260.00 to $212.00 and set a “neutral” rating for the company in a report on Wednesday, April 8th. Finally, JPMorgan Chase & Co. reduced their price objective 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. Two research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $244.14.

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.