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. QuoteAsbury’s Segment DetailsIn 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 TidbitsSelling, 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 PicksABG 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. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks