Asbury Automotive Group (NYSE:ABG) Releases Quarterly Earnings Results, Misses Expectations By $0.26 EPS

Asbury Automotive Group (NYSE:ABG) released its quarterly earnings data on Tuesday. The company reported $6.16 earnings per share for the quarter, missing the consensus estimate of $6.42 by ($0.26), FiscalAI reports. The firm had revenue of $4.41 billion for the quarter, compared to the consensus estimate of $4.51 billion. During the same period in the prior year, the company earned $7.17 EPS. The firm’s quarterly revenue was down 8.1% compared to the same quarter last year.

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

• Tekion rollout is complete across all active stores, with early adopters showing gains in customer-pay gross profit, fixed-operations productivity, units per salesperson, and technician profitability. Management expects further benefits as recently converted stores build proficiency, targeting SG&A at low-60% of gross profit by the end of 2027.
• The used-vehicle business continued to improve, with used retail gross profit up 3% year over year, gross profit per unit up 10% to $1,777, and retail volume up 4.5% sequentially. Management plans to pursue additional volume while protecting profitability and expects year-over-year unit growth in the fourth quarter.
• Third-quarter adjusted EPS was $6.16, including a $0.69-per-share non-cash headwind from Total Care Auto (TCA); EPS would have been $6.85 excluding the deferral. TCA’s pre-tax income fell to $5 million from $14 million a year earlier, and management expects continued TCA-related F&I pressure in 2027.
• Parts and service performance remained below expectations, with same-store customer-pay gross profit flat and total fixed-operations gross profit down 2%. New-vehicle units declined 8% year over year, while new-vehicle gross profit per unit fell 6% sequentially amid pressure from certain import and Stellantis brands.
• The FTC administrative proceeding against Asbury was dismissed, reinforcing management’s view that its F&I practices are lawful and compliant. The company also reiterated plans to reduce transaction-adjusted net leverage from 3.5 times to below 3 times by mid-2027 before prioritizing share repurchases and tuck-in acquisitions.

Asbury Automotive Group Price Performance

Shares of Asbury Automotive Group stock opened at $191.42 on Wednesday. The company’s 50-day moving average price is $189.83 and its 200-day moving average price is $205.24. Asbury Automotive Group has a 12-month low of $160.30 and a 12-month high of $258.74.

Analysts Set New Price Targets

A number of research firms recently weighed in on ABG. JPMorgan Chase & Co. dropped their price target on shares of Asbury Automotive Group from $190.00 to $185.00 and set an “underweight” rating on the stock in a research report on Tuesday, October 6th. UBS Group reduced their price objective on Asbury Automotive Group from $250.00 to $193.00 and set a “neutral” rating for the company in a research note on Wednesday, October 7th. Craig Hallum upgraded Asbury Automotive Group from a “hold” rating to a “buy” rating and set a $250.00 target price on the stock in a research note on Tuesday. Barclays reaffirmed a “reduce” rating on shares of Asbury Automotive Group in a research report on Tuesday, October 6th. Finally, Citigroup lifted their price target on shares of Asbury Automotive Group from $212.00 to $250.00 and gave the stock a “neutral” rating in a report on Friday, July 31st. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Asbury Automotive Group has an average rating of “Hold” and an average price target of $220.75.

More Asbury Automotive Group News

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

• Positive Sentiment: Craig Hallum upgraded Asbury Automotive Group (ABG) from “hold” to “buy” and set a $250 price target, implying approximately 27% upside from the cited $196.57 share price. The upgrade provides a positive catalyst and suggests the firm views the recent weakness as an attractive entry point. Craig Hallum analyst rating
• Neutral Sentiment: Asbury held its third-quarter 2026 earnings call, giving investors additional management commentary on the results, operating trends and outlook. The transcript follows the company’s quarterly release and may provide context for the earnings miss. Asbury Automotive Q3 2026 earnings call transcript
• Negative Sentiment: ABG reported third-quarter earnings of $6.16 per share, below consensus estimates ranging from $6.42 to $6.46 and down from $7.17 a year earlier. Revenue totaled $4.41 billion, missing the $4.51 billion estimate and declining 8.1% year over year. The earnings and revenue shortfalls point to softer dealership operating performance and are the primary negative drivers for the stock. Asbury Automotive third-quarter results

About Asbury Automotive Group

Asbury Automotive Group, Inc is a U.S.-based automotive retailer that operates franchised and independent dealerships. Its dealerships sell new and used vehicles from a range of domestic, import and luxury automobile brands, and provide related services throughout the vehicle ownership cycle.

The company’s operations include automotive repair and maintenance, parts and accessories, collision repair, vehicle financing and insurance products, and other dealership services. Asbury also supports vehicle sales and service through digital retailing and online customer tools.

Founded in 1995, Asbury has expanded through acquisitions and serves customers across multiple markets in the United States.