Asbury Q4 Earnings Miss Expectations, Revenues Rise Y/Y

Core Insights - Asbury Automotive (ABG) reported Q4 2025 adjusted earnings per share of $6.67, missing the Zacks Consensus Estimate of $6.70 and down from $7.26 in the previous year, primarily due to lower gross profits from new vehicle sales and retail wholesale [1][10] - Total revenues reached $4.7 billion, a nearly 4% year-over-year increase, but fell short of the Zacks Consensus Estimate of $4.82 billion [1] Segment Details - New vehicle revenues increased by 3% year over year to $2.53 billion, missing the Zacks Consensus Estimate of $2.59 billion; retail units sold totaled 47,201, exceeding the consensus of 47,182 units; however, gross profit declined by 8% to $157.9 million, missing the estimate of $160 million [2] - Used vehicle retail revenues rose by 1% to $1.11 billion but missed the Zacks Consensus Estimate of $1.18 billion due to a decrease in units sold, totaling 33,782, which was down 4% year over year and below the consensus of 37,128 [3] - Retail used vehicle average selling price (ASP) increased by 6% to $32,993, surpassing the estimate of $31,558; gross profit from this segment was $59.4 million, up 16% year over year but below the estimate of $61 million [4] - Revenues from the used vehicle wholesale business grew by 11% to $177 million, beating the consensus of $173 million; however, gross profit fell by 50% to $0.9 million, missing the estimate of $3.42 million [4] - Finance and insurance business net revenues amounted to $201.4 million, up 1% year over year and exceeding the estimate of $186 million; gross profit was $189 million, up 2% year over year and beating the estimate of $177 million [5] - Parts and service business revenues reached $658.3 million, up from $590.4 million year over year but missing the estimate of $667 million; gross profit rose by 13% to $385.9 million, falling short of the consensus of $391 million [6] Other Financial Insights - Selling, general & administrative expenses as a percentage of gross profit increased to 66.7%, up 307 basis points year over year [7] - As of December 31, 2025, the company had cash and cash equivalents of $40.4 million, down from $69.4 million a year earlier; long-term debt rose to $3.57 billion from $3.14 billion [7] - The company repurchased approximately 212,000 shares for $50 million in Q4 2025, totaling about 433,000 shares for $100 million for the full year; $176 million remains available under its share buyback authorization [8]