Why Is Asbury Automotive (ABG) Up 15.6% Since Last Earnings Report?

Core Viewpoint - Asbury Automotive Group's recent earnings report showed a mixed performance, with adjusted earnings per share exceeding estimates but revenues falling short, leading to a 15.6% increase in share price over the past month, outperforming the S&P 500 [1][3]. Financial Performance - Asbury reported Q2 2025 adjusted earnings per share of $7.43, surpassing the Zacks Consensus Estimate of $6.82 and increasing from $6.40 in the previous year [3]. - Total revenues for the quarter were $4.37 billion, a nearly 3% year-over-year increase, but below the Zacks Consensus Estimate of $4.45 billion [3]. Segment Performance - New vehicle revenues rose 6% year-over-year to $2.30 billion, slightly missing the consensus estimate of $2.31 billion, with retail units sold totaling 44,437, up 4% year-over-year but below the consensus of 45,291 units [4]. - Used vehicle retail revenues declined 3% year-over-year to $1.13 billion, missing the consensus estimate of $1.15 billion, with retail used vehicle units sold totaling 36,233, down 6% year-over-year [5]. - Revenues from the used vehicle wholesale business increased 11% to $156.3 million, exceeding the consensus estimate of $153 million [6]. - Finance and insurance business net revenues amounted to $182 million, down 5% year-over-year and below the consensus estimate of $203 million [7]. - Parts and service business revenues were $601.5 million, up from $580.9 million year-over-year but missing the consensus estimate of $625 million [8]. Cost and Debt Management - Selling, general & administrative expenses as a percentage of gross profit rose to 63.2%, a decrease of 198 basis points year-over-year [9]. - As of June 30, 2025, the company had cash and cash equivalents of $54.8 million, down from $69.4 million at the end of 2024, and long-term debt decreased to $3.05 billion from $3.14 billion [9]. Market Outlook - Estimates for Asbury Automotive have been trending upward, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [12]. - The company has a subpar Growth Score of D and a Momentum Score of D, but a strong Value Score of A, placing it in the top quintile for value investment strategy [11]. Industry Comparison - Asbury Automotive is part of the Zacks Automotive - Retail and Wholesale industry, where Sonic Automotive has gained 17.1% over the past month, reporting revenues of $3.66 billion, a year-over-year increase of 5.9% [13].