Earnings Alerts

Asbury Automotive (ABG) Earnings: 2Q Revenues Fall Short of Estimates with Robust EPS Growth

  • Asbury Auto reported a revenue of $4.37 billion for Q2, marking a 3% increase from the previous year; this was below the estimated $4.45 billion.
  • New Vehicle revenue stood at $2.30 billion, a 6.4% increase year-over-year, which was slightly below the forecasted $2.35 billion.
  • Revenue from Used Vehicles was $1.29 billion, a decrease of 1.7% compared to the previous year, missing the $1.3 billion estimate.
  • The company’s gross margin remained steady at 17.2%, on par with the previous year, and surpassed the estimated margin of 16.8%.
  • Adjusted Earnings Per Share (EPS) improved to $7.43, up from $6.40 the previous year, exceeding the projected $6.87.
  • Analyst recommendations include 2 buy ratings, 7 hold ratings, and 1 sell rating.

Asbury Automotive on Smartkarma

Analyst coverage of Asbury Automotive on Smartkarma has been positive, with reports from Baptista Research shedding light on the company’s financial performance and strategic initiatives. According to Baptista Research‘s analysis, Asbury Automotive‘s first quarter of 2025 showed a mix of strengths and challenges, with revenue reaching $4.1 billion and a gross profit of $724 million. The company achieved a record gross profit in its parts and service division, indicating steady growth despite tariff uncertainties. Similarly, the bold tech upgrade with Tekion DMS was highlighted as a cost-saving measure that could potentially save millions for Asbury Automotive.

Baptista Research‘s reports emphasized Asbury Automotive‘s solid performance in the fourth quarter of 2024, with a significant 18% year-over-year increase in revenue to $4.5 billion. The company’s strategic focus on profitability, especially in the used vehicle segment, resulted in an 11% rise in gross profit to $750 million. These results were driven by a 7% increase in same-store new vehicle sales, showcasing effective execution amid dynamic market conditions. Overall, the analyst sentiment leans bullish, underscoring optimism about Asbury Automotive‘s growth trajectory and operational efficiencies.


A look at Asbury Automotive Smart Scores

FactorScoreMagnitude
Value4
Dividend1
Growth3
Resilience2
Momentum4
OVERALL SMART SCORE2.8

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Asbury Automotive Group Inc. is showing a positive long-term outlook based on the Smartkarma Smart Scores. The company scores high in terms of value and momentum, indicating a strong overall performance in these areas. With a solid value score of 4, Asbury Automotive is positioned well in terms of its financials and investment potential. Additionally, a momentum score of 4 suggests that the company is gaining traction and investor interest, potentially leading to future growth opportunities.

Although Asbury Automotive scores lower in areas such as dividend, growth, and resilience, the positive outlook from the value and momentum scores bodes well for its future prospects. With a diverse offering of new and used vehicles, financing and insurance services, maintenance and repair options, as well as replacement parts, Asbury Automotive‘s focus on luxury and mid-line import brands positions it well in the competitive automotive retail market in the United States.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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