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

Key Points

• Asbury reported Q1 adjusted EPS of $5.37 versus $5.62 expected and revenue of $4.11B versus $4.48B expected, with net margin 2.73% and revenue down 0.9% year‑over‑year.
• The company is migrating dealerships to Tekion (over 50% converted) and warns of peak integration costs and temporary operational disruption in late Q2–Q3, while noting early productivity gains at converted stores.
• Asbury sold 10 dealerships and a collision center (≈$625M annualized revenue) and used proceeds to repurchase 678,000 shares for $147M and pay down debt, signaling management views the stock as undervalued.

Asbury Automotive Group (NYSE:ABG - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $5.37 EPS for the quarter, missing the consensus estimate of $5.62 by ($0.25), FiscalAI reports. Asbury Automotive Group had a net margin of 2.73% and a return on equity of 14.51%. The company had revenue of $4.11 billion during the quarter, compared to analysts' expectations of $4.48 billion. During the same period last year, the business earned $6.82 earnings per share. The company's revenue for the quarter was down .9% compared to the same quarter last year.

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

• Asbury is migrating dealerships to Tekion with >50% of stores converted and full conversion expected by fall; management warns peak integration costs and temporary operational disruption in late Q2–Q3 but highlights early efficiency gains (e.g., Koons: +21% gross dollars per technician, +16% service advisor productivity).
• The company divested 10 dealerships and a collision center (≈$625M annualized revenue) and used proceeds to repurchase 678,000 shares for $147M while paying down debt, citing a view that the stock is undervalued.
• Q1 results — $4.1B revenue, $727M gross profit (17.7% margin), adjusted EBITDA $207M and adjusted EPS $5.37 — with a $0.26 per-share non‑cash TCA deferral and an estimated weather-related EPS headwind of ~$0.56.
• Used vehicle profitability strengthened: used retail gross profit per unit rose 12% to $1,828, same-store used DSI fell to 30 days, and management noted sequential GPU improvements in 6 of the last 7 quarters.
• Parts & service was pressured this quarter by severe winter weather and the DMS transition, creating near-term softness in fixed‑ops gross profit despite management expecting mid‑single‑digit growth over time.

Asbury Automotive Group Trading Down 0.0%

Shares of NYSE ABG opened at $199.98 on Wednesday. The company has a quick ratio of 0.35, a current ratio of 0.95 and a debt-to-equity ratio of 0.79. The stock's 50 day moving average price is $203.08 and its two-hundred day moving average price is $224.72. Asbury Automotive Group has a 52-week low of $184.61 and a 52-week high of $274.50. The stock has a market capitalization of $3.86 billion, a P/E ratio of 7.97, a PEG ratio of 1.01 and a beta of 0.80.

Insider Buying and Selling

In other Asbury Automotive Group news, Director B. Christopher Disantis bought 500 shares of the company's stock in a transaction on Tuesday, March 10th. The shares were bought at an average cost of $202.30 per share, with a total value of $101,150.00. Following the completion of the acquisition, the director owned 5,400 shares of the company's stock, valued at approximately $1,092,420. This trade represents a 10.20% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.75% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Asbury Automotive Group

Several institutional investors have recently made changes to their positions in the stock. Dimensional Fund Advisors LP boosted its position in Asbury Automotive Group by 1.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,122,322 shares of the company's stock valued at $260,980,000 after purchasing an additional 18,154 shares during the period. State Street Corp increased its position in Asbury Automotive Group by 1.2% in the fourth quarter. State Street Corp now owns 781,228 shares of the company's stock worth $181,659,000 after buying an additional 9,535 shares during the period. Goldman Sachs Group Inc. lifted its stake in Asbury Automotive Group by 49.1% in the first quarter. Goldman Sachs Group Inc. now owns 278,760 shares of the company's stock valued at $61,561,000 after buying an additional 91,767 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its stake in Asbury Automotive Group by 1.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 227,948 shares of the company's stock valued at $53,005,000 after buying an additional 3,781 shares during the last quarter. Finally, UBS Group AG boosted its holdings in shares of Asbury Automotive Group by 30.0% during the third quarter. UBS Group AG now owns 191,942 shares of the company's stock valued at $46,920,000 after acquiring an additional 44,336 shares during the period.

Analyst Ratings Changes

Several brokerages have issued reports on ABG. Citigroup lowered their price objective on shares of Asbury Automotive Group from $260.00 to $212.00 and set a "neutral" rating for the company in a research report on Wednesday, April 8th. Stephens cut their price objective on shares of Asbury Automotive Group from $277.00 to $254.00 and set an "overweight" rating on the stock in a report on Wednesday, April 8th. Bank of America began coverage on shares of Asbury Automotive Group in a research report on Wednesday, March 4th. They issued a "buy" rating for the company. Weiss Ratings lowered Asbury Automotive Group from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, February 23rd. Finally, Barclays raised their price objective on Asbury Automotive Group from $230.00 to $235.00 and gave the company an "equal weight" rating in a research note on Tuesday, April 7th. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $241.57.

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.