Market Overview - The U.S. stock market is expected to face ongoing volatility due to uncertainties surrounding trade policies, economic challenges, and changing investor sentiment [1] - A 90-day extension on higher tariffs against China provides temporary relief, but the lack of clarity on tariffs suggests that volatility will persist [1] Investment Strategy - Investors are encouraged to consider broker recommendations as a practical approach to identify promising stocks amid market uncertainty [2] - Broker-backed stocks such as American Axle & Manufacturing (AXL), Brookdale Senior Living (BKD), Adient (ADNT), Asbury Automotive (ABG), and AutoNation (AN) are highlighted as attractive options for potential returns [2][8] Stock Screening Methodology - A screening process has been developed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks [3] - The screening criteria include net upgrades in ratings, percentage change in earnings estimates, and price-to-sales ratio, focusing on companies with strong top-line performance [4][5] Featured Stocks - **American Axle & Manufacturing (AXL)**: The company is making significant progress in the electric drive sector and has secured multiple contracts, indicating strong growth potential. AXL has exceeded earnings estimates by an average of 584.1% over the past four quarters [6][7] - **Brookdale Senior Living (BKD)**: An increase in occupancy rates is expected to drive higher resident fee revenues, contributing to growth in adjusted EBITDA. BKD's earnings estimate for 2025 has been revised upward by 7.8% from 2024 [9] - **Adient (ADNT)**: The company has a diverse customer base and is focused on product launches to secure new business. ADNT has beaten earnings estimates in three of the past four quarters, with an average beat of 30.3% [10][11] - **Asbury Automotive (ABG)**: The company's diversified product mix and e-commerce platform are driving growth. ABG has beaten earnings estimates in two of the past four quarters, with an average beat of 5.9% [12][13] - **AutoNation (AN)**: As one of the largest automotive retailers, AutoNation is expanding its store network and embracing digital transformation. AN has surpassed earnings estimates in three of the past four quarters, with an average beat of 7.5% [14][15]

Group 1 - Asbury Group (ABG) and AutoNation (AN) are significant players in the U.S. auto dealership market, showcasing strong operational performance [3] - The auto dealership sector is experiencing growth driven by increased consumer demand and favorable market conditions [3] - Both companies are strategically positioned to capitalize on market trends, enhancing their competitive advantage [3]

PART I—Financial Information [Condensed Consolidated Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) The unaudited statements present the company's financial position, results of operations, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to $10.13 billion while shareholders' equity increased to $3.78 billion as of June 30, 2025 Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$10,131.6** | **$10,337.0** | | Total Current Assets | $3,129.6 | $3,137.9 | | Inventories, net | $1,942.2 | $1,978.8 | | Goodwill | $1,974.7 | $2,044.7 | | **Total Liabilities** | **$6,354.6** | **$6,834.9** | | Total Current Liabilities | $2,403.1 | $2,836.3 | | Floor plan notes payable, net | $1,288.6 | $1,694.7 | | Long-term debt | $2,964.1 | $3,023.9 | | **Total Shareholders' Equity** | **$3,777.0** | **$3,502.1** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income surged in Q2 2025, primarily due to the absence of a prior-year asset impairment charge Q2 Financial Performance (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $4,373.1 | $4,246.2 | 3.0% | | Gross Profit | $751.9 | $730.7 | 2.9% | | Income from Operations | $257.4 | $100.5 | 156.1% | | Net Income | $152.8 | $28.1 | 443.8% | | Diluted EPS | $7.76 | $1.39 | 458.3% | H1 Financial Performance (in millions, except EPS) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $8,521.6 | $8,447.4 | 0.9% | | Gross Profit | $1,476.1 | $1,480.7 | -0.3% | | Income from Operations | $491.7 | $363.3 | 35.3% | | Net Income | $284.9 | $175.2 | 62.6% | | Diluted EPS | $14.46 | $8.64 | 67.4% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased, driven by higher net income and favorable working capital changes Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $316.4 | $22.7 | | Net cash provided by (used in) investing activities | $129.1 | $(18.0) | | Net cash (used in) provided by financing activities | $(460.1) | $16.7 | | **Net (decrease) increase in cash** | **$(14.6)** | **$21.5** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the significant post-quarter Herb Chambers acquisition, divestitures, and a pending FTC legal proceeding - The company operates through two reportable segments: Dealerships and Total Care Auto (TCA), its finance and insurance (F&I) product provider[24](index=24&type=chunk)[87](index=87&type=chunk) - On July 21, 2025, after the quarter ended, the company completed the acquisition of The Herb Chambers Companies for a preliminary purchase price of approximately **$1.82 billion**, financed through borrowings and cash[39](index=39&type=chunk)[40](index=40&type=chunk) - During the first six months of 2025, the company sold seven franchises across multiple locations, recording a **pre-tax gain of $10.1 million**[44](index=44&type=chunk) - A pre-tax non-cash franchise rights **impairment charge of $14.3 million** was recognized in March 2025 in connection with five dealerships classified as assets held for sale[51](index=51&type=chunk) - The company is involved in an administrative proceeding with the Federal Trade Commission (FTC) regarding alleged violations of the FTC Act and Equal Credit Opportunity Act[94](index=94&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes revenue growth to new vehicle sales, with income boosted by the absence of a prior-year impairment charge [Results of Operations - Three Months Ended June 30, 2025 vs. 2024](index=33&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202025%20vs.%202024) Q2 revenue and operating income grew significantly, aided by a favorable comparison to the prior year's impairment charge - The CDK Global cyber-incident in June 2024 negatively impacted the prior year's results, creating a **favorable comparison for Q2 2025 performance**[121](index=121&type=chunk) Q2 2025 Key Performance Indicators vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | New Vehicle Revenue | $2,303.9M | $2,164.9M | 6% | | Used Vehicle Revenue | $1,285.8M | $1,308.0M | -2% | | Parts & Service Revenue | $601.5M | $580.9M | 4% | | F&I Revenue, net | $182.0M | $192.4M | -5% | | SG&A as % of Gross Profit | 63.2% | 65.2% | -2.0 p.p. | Q2 2025 Gross Profit Per Vehicle Retailed (PVR) vs. Q2 2024 | PVR Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | New Vehicle | $3,601 | $3,633 | -1% | | Used Vehicle (Retail) | $1,720 | $1,463 | 18% | | F&I, net | $2,084 | $2,151 | -3% | [Results of Operations - Six Months Ended June 30, 2025 vs. 2024](index=42&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030%2C%202025%20vs.%202024) H1 revenue saw modest growth while operating income increased substantially due to lower asset impairment charges H1 2025 Key Performance Indicators vs. H1 2024 | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | New Vehicle Revenue | $4,442.0M | $4,229.1M | 5% | | Used Vehicle Revenue | $2,521.6M | $2,664.9M | -5% | | Parts & Service Revenue | $1,189.1M | $1,171.2M | 2% | | F&I Revenue, net | $368.9M | $382.1M | -3% | | SG&A as % of Gross Profit | 63.1% | 63.8% | -0.7 p.p. | H1 2025 Gross Profit Per Vehicle Retailed (PVR) vs. H1 2024 | PVR Category | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | New Vehicle | $3,527 | $3,814 | -8% | | Used Vehicle (Retail) | $1,654 | $1,556 | 6% | | F&I, net | $2,171 | $2,205 | -2% | [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position of $1.12 billion, with no share repurchases during the period - Total available liquidity as of June 30, 2025, was **$1.12 billion**[181](index=181&type=chunk) Adjusted Cash Flow from Operating Activities (in millions) | Period | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Adjusted Cash Flow | $334.0 | $402.0 | - **No shares were repurchased** under the share repurchase program in H1 2025[185](index=185&type=chunk) - The company had **$275.9 million remaining** on its share repurchase authorization as of June 30, 2025[186](index=186&type=chunk) - Projected capital expenditures for the full year 2025 are expected to be approximately **$273.1 million**[200](index=200&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk on its variable-rate debt, which it mitigates using interest rate swaps - The company has **$1.28 billion in variable interest rate debt**, where a 100 basis point change would impact annual interest expense by $12.8 million[212](index=212&type=chunk) - Asbury uses **five interest rate swap agreements** to hedge against changes in variable rate cash flows related to the SOFR rate[214](index=214&type=chunk)[215](index=215&type=chunk) [Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were deemed ineffective due to a material weakness at a recently acquired dealership, with remediation underway - Disclosure controls and procedures were deemed **not effective** as of June 30, 2025, due to a material weakness[217](index=217&type=chunk) - The material weakness stems from insufficient IT general controls at a third-party DMS vendor for the **acquired Koons dealerships**[219](index=219&type=chunk) - Remediation efforts are underway, with the transition of Koons stores to a new DMS nearly complete as of July 2025 and full remediation expected in 2025[220](index=220&type=chunk) PART II—Other Information [Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) No new material legal proceedings or developments were reported during the period - **No material developments** in legal proceedings were reported for the quarter[223](index=223&type=chunk) [Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were identified in the quarter - **No material changes** to risk factors were reported for the quarter[224](index=224&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares under its public program but has $275.9 million remaining in its authorization Q2 2025 Share Repurchase Activity | Period | Shares Purchased (Program) | Shares Purchased (Other) | Avg. Price Paid | | :--- | :--- | :--- | :--- | | Apr 2025 | 0 | 72 | $223.54 | | May 2025 | 0 | 138 | $223.57 | | Jun 2025 | 0 | 436 | $245.99 | | **Total Q2** | **0** | **646** | **N/A** | - The company has **$275.9 million remaining** under its share repurchase authorization as of June 30, 2025[226](index=226&type=chunk) [Other Information](index=56&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted, modified, or terminated a **Rule 10b5-1 trading arrangement** during the quarter[228](index=228&type=chunk) [Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including certifications and interactive data files

Core Insights - Asbury Automotive (ABG) reported second-quarter 2025 adjusted earnings per share of $7.43, exceeding the Zacks Consensus Estimate of $6.82 and up from $6.40 in the previous year, driven by better-than-expected gross profits from vehicle sales [1][9] - Total revenues for the quarter were $4.37 billion, reflecting a nearly 3% year-over-year increase but falling short of the Zacks Consensus Estimate of $4.45 billion [1][9] Segment Performance - New vehicle revenues increased by 6% year over year to $2.30 billion, slightly missing the Zacks Consensus Estimate of $2.31 billion, attributed to lower-than-expected selling prices and unit sales [2] - Retail units sold in the new vehicle segment totaled 44,437, a 4% increase year over year, but below the consensus mark of 45,291 units [2] - The average selling price (ASP) for new vehicles was $51,846, up 2% year over year, but missed the consensus estimate of $52,011 [2] - Gross profit from new vehicles was $160 million, up 3% from the prior year and surpassing the Zacks Consensus Estimate of $148 million [2] - Used vehicle retail revenues declined by 3% year over year to $1.13 billion, missing the Zacks Consensus Estimate of $1.15 billion due to lower ASP and unit sales [3] - Retail used vehicle units sold totaled 36,233, down 6% year over year, lagging behind the consensus mark of 36,382 units [3] - The ASP for used vehicles was $31,171, up 3% year over year, but fell short of the consensus estimate of $31,207 [3] - Gross profit from used vehicles was $62.3 million, an 11% increase year over year, exceeding the Zacks Consensus Estimate of $57 million [3] - Revenues from the used vehicle wholesale business rose 11% to $156.3 million, beating the consensus estimate of $153 million [4] - Gross profit from the wholesale unit surged 43% to $6.6 million, surpassing the consensus mark of $2.72 million [4] - Net revenues from the finance and insurance business were $182 million, down 5% year over year and below the Zacks Consensus Estimate of $203 million [5] - Gross profit in this segment was $168.1 million, a 4% year-over-year decline, missing the Zacks Consensus Estimate of $170 million [5] - Revenues from the parts and service business reached $601.5 million, up from $580.9 million in the previous year but missing the Zacks Consensus Estimate of $625 million [6] - Gross profit from parts and service was $354.8 million, which lagged the consensus mark of $359 million but represented a 4% year-over-year increase [6] Financial Metrics - Selling, general & administrative expenses as a percentage of gross profit increased to 63.2%, a decrease of 198 basis points year over year [7] - As of June 30, 2025, the company had cash and cash equivalents of $54.8 million, down from $69.4 million as of December 31, 2024 [7] - Long-term debt stood at $3.05 billion as of June 30, 2025, down from $3.14 billion as of December 31, 2024 [7]

Core Viewpoint - Asbury Automotive Group held its Second Quarter 2025 Earnings Call, discussing financial results and future expectations [2][3]. Group 1: Company Overview - The call featured key participants including David Hult (President and CEO), Dan Clara (COO), and Michael Welch (CFO) [1][3]. - The press release detailing the second quarter results was made available on the company's investor relations website [3]. Group 2: Financial Performance - The earnings call is expected to include forward-looking statements regarding financial projections and forecasts, which are subject to uncertainties [4].

Financial Data and Key Metrics Changes - The company generated $4.4 billion in revenue, with a gross profit of $752 million and a gross profit margin of 17.2% [11] - Adjusted operating margin was 5.8%, and adjusted earnings per share (EPS) was $7.43, with adjusted EBITDA at $256 million [12][19] - Adjusted net income for the quarter was $146 million, with a non-cash deferral headwind of $0.43 per share due to TCA [19][20] Business Line Data and Key Metrics Changes - Same store revenue for new vehicles increased by 9% year over year, with units up by 7% and average gross profit per vehicle at $3,611 [12][12] - Used vehicle unit volume decreased by 4% year over year, with retail gross profit per unit at $17,290, marking the fourth quarter of sequential growth [13][14] - Parts and service gross profit increased by 7%, with a gross profit margin of 59.2% and a fixed absorption rate over 100% [16][17] Market Data and Key Metrics Changes - The same store new day supply was 59 days at the end of June, while the used day supply of inventory was 37 days [12][14] - The company noted strong demand in the second quarter, although a decline was observed as the quarter progressed due to tariff impacts [8] Company Strategy and Development Direction - The company is focused on integrating the Herb Chambers acquisition and optimizing its portfolio by divesting nine stores, which generated proceeds of $250 million to $270 million [11][25] - The transition to Techeon is a key investment aimed at improving operational efficiency and guest experience, with full conversion expected by 2027 [10][60] - The company aims to reduce leverage over the next 12 to 18 months while remaining opportunistic with share repurchases [11][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the resilience of the automotive retail business despite potential headwinds from tariffs and market conditions [81][82] - The company anticipates that the second half of the year will depend heavily on tariff decisions and their impact on consumer pricing [8][19] Other Important Information - The average age of passenger cars on the road is 14.5 years, indicating a strong potential for service growth in the parts and service business [18] - The company has a transaction-adjusted net leverage ratio of 2.46 times, which is expected to be above the target range following the Chambers acquisition [23][24] Q&A Session Summary Question: Can you walk through the cadence of GPU and units as the quarter progressed? - Management noted that GPUs started strong but adjusted as the quarter progressed, with expectations for GPUs to fall into the $2,500 to $3,000 range [27][30] Question: What initiatives are keeping SG&A under control? - The focus is on productivity per employee and maintaining discipline on headcount, with some costs related to Techeon conversion impacting the SG&A numbers [34][35] Question: What opportunities for improvement exist with the Herb Chambers acquisition? - Management highlighted the luxury mix and market presence of Herb Chambers, indicating potential for operational efficiencies and improved metrics [39][41] Question: How does the company plan to maintain parts and service growth amid tougher comparisons? - Management expressed confidence in maintaining mid-single-digit growth in parts and service, despite anticipated headwinds from warranty work [42][45] Question: What is the strategy regarding used GPUs and inventory? - The strategy remains focused on maximizing gross profit rather than volume, with continuous assessment of market conditions [54][56] Question: What are the implementation costs for Techeon? - Implementation costs for Techeon were approximately $2 million in the quarter, split between duplication and third-party audit costs [62]

Financial Data and Key Metrics Changes - The company generated $4.4 billion in revenue for Q2 2025, with a gross profit of $752 million and a gross profit margin of 17.2% [11] - Adjusted operating margin was reported at 5.8%, with adjusted earnings per share (EPS) at $7.43 and adjusted EBITDA at $256 million [12][19] - Adjusted net income for the quarter was $146 million, with a non-cash deferral headwind of $0.43 per share due to TCA [19][20] Business Line Data and Key Metrics Changes - Same store revenue for new vehicles increased by 9% year over year, with units sold up by 7% and average gross profit per vehicle at $3,611 [12][13] - Used vehicle unit volume decreased by 4% year over year, but used retail gross profit per unit increased to $17,290, marking the fourth quarter of sequential growth [13][14] - Parts and service gross profit increased by 7%, with a gross profit margin of 59.2% and a fixed absorption rate over 100% [16][17] Market Data and Key Metrics Changes - The same store new day supply was 59 days at the end of June, while the used day supply of inventory was 37 days [12][14] - The company noted strong performance in the Stellantis brand, with a 15.6% increase in volume compared to a national sales decline of 11.5% [12][13] Company Strategy and Development Direction - The company is focusing on integrating the Herb Chambers acquisition and optimizing its portfolio by divesting nine stores, which generated proceeds of $250 million to $270 million [11][25] - The transition to Techeon is a key investment aimed at improving operational efficiency and guest experience, with full conversion expected by 2027 [10][62] - The company aims to reduce leverage over the next 12 to 18 months while remaining opportunistic with share repurchases [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, despite potential headwinds from tariffs and market conditions, emphasizing the resilience of the automotive retail business [81][72] - The company anticipates that the second half of the year will depend heavily on tariff decisions and consumer pricing [8][19] - Management highlighted the importance of maintaining productivity per employee to control SG&A expenses amid potential volume declines [34][35] Other Important Information - The average age of passenger cars on the road is 14.5 years, indicating a growing opportunity for service growth [18] - The company ended Q2 with $1.1 billion in liquidity and a transaction-adjusted net leverage ratio of 2.46 times [23][24] Q&A Session Summary Question: Can you walk through the cadence of GPU and units as the quarter progressed? - Management noted that GPUs started strong but adjusted as the quarter progressed, with expectations of falling into the $2,500 to $3,000 range [27][28] Question: What initiatives are keeping SG&A under control? - The focus is on employee productivity and managing outside services, with some costs related to Techeon conversion impacting the SG&A ratio [34][35] Question: What opportunities exist for improving metrics post-Herb Chambers acquisition? - Management sees opportunities in luxury vehicle sales and operational efficiencies, emphasizing the strategic importance of the New England market [40][42] Question: How does the company plan to maintain parts and service growth amid tougher comparisons? - Management is confident in maintaining mid-single-digit growth, leveraging customer pay work to offset warranty headwinds [43][46] Question: What is the impact of tariffs on inventory and production? - Management indicated that while inventory is lean, it has not been negatively affected beyond normal operating levels, and OEMs have been preparing for tariff impacts [66][67] Question: Is California a potential market for future expansion? - Management stated that California is not currently a focus due to franchise laws and better investment opportunities in other states [69][70]

Core Insights - Asbury Automotive Group reported $4.37 billion in revenue for Q2 2025, a 3% year-over-year increase, with an EPS of $7.43 compared to $6.40 a year ago, indicating an EPS surprise of +8.94% against the consensus estimate [1] Financial Performance - Revenue of $4.37 billion was below the Zacks Consensus Estimate of $4.45 billion, representing a surprise of -1.73% [1] - Unit sales for new vehicles were 44,437, slightly below the average estimate of 45,291 [4] - Unit sales for used vehicle retail were 36,233, compared to the average estimate of 36,382 [4] - Average selling price for new vehicles was $51.85 billion, slightly lower than the average estimate of $52.01 billion [4] - Revenues from new vehicles were $2.3 billion, a 6.4% year-over-year increase, compared to the average estimate of $2.31 billion [4] - Revenues from used vehicles were $1.29 billion, a -1.7% change year-over-year, below the average estimate of $1.32 billion [4] - Revenues from parts and service were $601.5 million, a 3.6% year-over-year increase, below the average estimate of $624.93 million [4] - Revenues from finance and insurance net were $182 million, a -5.4% change year-over-year, below the average estimate of $203.25 million [4] - Revenues from used vehicle retail were $1.13 billion, a -3.2% change year-over-year, below the average estimate of $1.15 billion [4] - Revenues from used vehicle wholesale were $156.3 million, a 10.9% year-over-year increase, above the average estimate of $153.27 million [4] Stock Performance - Asbury Automotive shares returned -3.9% over the past month, while the Zacks S&P 500 composite increased by +3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Highlights - Asbury's revenue has increased by 138% since 2019, with a Compound Annual Growth Rate (CAGR) of +19%[13] - Adjusted Earnings Per Share (EPS) has increased by 188% since 2019, with a CAGR of +24%[13] - The number of new car dealerships has increased by 73% since 2019[13] - Total revenue reached $173 billion[17], with 320118 new and used vehicles retailed[18] Financial Performance (2Q25) - Total company revenue increased by 3%, with same-store revenue up by 5%[34] - New vehicle revenue increased by 6%, with same-store revenue up by 9%[34] - Used vehicle retail decreased by 3%, with same-store retail down by 1%[34] - Parts & Service revenue increased by 4%, with same-store revenue up by 6%[34] Total Care Auto (TCA) - TCA standalone pre-tax income is estimated to be $75 million in 2025[53] - Consolidated TCA pre-tax income is estimated to be $35 million in 2025[53] Herb Chambers Acquisition - The acquisition is valued at approximately $145 billion[77] - Herb Chambers generated $29 billion in revenue in FY2024[69] - The acquisition is expected to increase Asbury's luxury brand mix from 30% to 35%[81]

Asbury Automotive Group (ABG) came out with quarterly earnings of $7.43 per share, beating the Zacks Consensus Estimate of $6.82 per share. This compares to earnings of $6.4 per share a year ago. These figures are adjusted for non-recurring items. While Asbury Automotive has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the ...