Asbury Automotive's Q1 Earnings Lag Estimates, Revenues Decline Y/Y

Core Insights - Asbury Automotive (ABG) reported first-quarter 2025 adjusted earnings per share of $6.82, missing the Zacks Consensus Estimate of $6.84 and down from $7.21 in the previous year [1] - Total revenues for the quarter were $4.15 billion, a decrease of 1.2% year over year, and also below the Zacks Consensus Estimate of $4.4 billion [1] Segment Details - New vehicle revenues increased by 4% year over year to $2.14 billion, but fell short of the Zacks Consensus Estimate of $2.24 billion due to lower unit sales [2] - Retail units sold in the new vehicle segment totaled 41,496, up 2% year over year, but below the consensus mark of 43,854 units [2] - The average selling price (ASP) for new vehicles was $51,525, up 2% year over year, exceeding the consensus estimate of $51,133 [2] - Gross profit from the new vehicle segment was $143.1 million, down 12% from the prior-year quarter and missing the consensus estimate of $151 million [2] Used Vehicle Performance - Used vehicle retail revenues declined by 9% year over year to $1.08 billion, missing the Zacks Consensus Estimate of $1.2 billion due to lower ASP and unit sales [3] - Retail used vehicle units sold totaled 35,415, down 10% year over year, lagging behind the consensus mark of 39,161 units [3] - The ASP for used vehicles was $30,465, up 1% year over year, but missed the consensus estimate of $30,476 [3] - Gross profit from the used vehicle segment was $56.2 million, down 14% year over year and below the consensus estimate of $59 million [3] Other Business Segments - Revenues from the used vehicle wholesale business fell by 5% to $157 million, meeting the consensus mark [4] - Gross profit from the wholesale unit increased by 21% to $8.4 million, surpassing the consensus estimate of $2.75 million [4] - Finance and insurance business net revenues were $187 million, down 1% year over year and below the consensus estimate of $189 million [4] - Gross profit from finance and insurance was $173.9 million, down 4% year over year but exceeding the consensus estimate of $165 million [4] Parts and Service Business - Revenues from the parts and service business were $587.6 million, slightly down from $590.4 million in the previous year and missing the Zacks Consensus Estimate of $630 million [5] - Gross profit from this segment was $342.7 million, which lagged the consensus mark of $359 million but rose 3% year over year [5] Financial Position - As of March 31, 2025, the company had cash and cash equivalents of $124.6 million, up from $69.4 million as of December 31, 2024 [6] - Long-term debt was $3.13 billion, down from $3.14 billion as of December 31, 2024 [6] - The company did not repurchase any shares in the first quarter of 2025 [6]