Asbury Automotive Group(US:ABG) ZACKS·2025-11-27 17:31Core Insights - Asbury Automotive Group reported strong Q3 2025 earnings, with adjusted EPS of $7.17, surpassing estimates and showing a year-over-year increase from $6.35 [3] - Revenues for the quarter reached $4.80 billion, a nearly 13% increase year-over-year, exceeding the consensus estimate [3] Segment Performance - New vehicle revenues increased by 17% year-over-year to $2.53 billion, driven by higher unit sales, with retail units sold totaling 48,070, up 13% from the previous year [4] - Used vehicle retail revenues rose 7% to $1.23 billion but fell short of estimates due to lower unit sales, with retail used vehicle units sold at 37,696, up only 1% year-over-year [5] - Wholesale used vehicle revenues climbed 27% to $185.5 million, exceeding consensus estimates [6] - Finance and insurance business net revenues were $200.3 million, an 8% increase year-over-year, beating estimates [7] - Parts and service revenues reached $659.4 million, up from $593.1 million year-over-year, but missed the consensus estimate [8] Financial Metrics - Selling, general & administrative expenses as a percentage of gross profit increased to 65.7%, up 70 basis points year-over-year [9] - Cash and cash equivalents decreased to $32.2 million from $69.4 million at the end of 2024, while long-term debt rose to $3.6 billion [9] Market Outlook - Following the earnings release, there has been an upward trend in estimates for Asbury Automotive [10] - The company holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [12] Industry Comparison - Asbury Automotive is part of the Zacks Automotive - Retail and Wholesale industry, where competitor AutoNation reported a 6.9% year-over-year revenue increase to $7.04 billion [13]