ABG NYSE Earnings call
Asbury Automotive Group Inc. (ABG) · Q2 2026 results and valuation
Share price: $207.94 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 28 Jul 2026 and 28 Apr 2026
Net income down 39.0% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−39.0%
Net income vs Q1 2026
Outlook given
Net income 114.6M vs 187.8M
Revenue +6.6%
Against the same quarter last year (Q2 2025) it is −25.0%, so it is not just seasonal.
2 · How management spoke
Typical
Less upbeat than 53% of company calls
Answers to analysts: cautious, in line with the script.
Similar to last call.
3 · What stood out
Guidance
Realizing expected margins is more difficult or very tough because the company is the last person standing at the auction.
Valuation
Is Asbury Automotive Group Inc. undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 5.3% growth a year (3-year revenue growth), the model's fair value is $457.90 a share — the stock trades 55% below it. Today's price assumes −5.8% growth a year.
Current price
$207.94
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-5.8% for 10 yrs
Fair value / share
$457.90
Buy below
$343.43
Price vs fair value
Undervalued 55%
Price vs buy-below price
Undervalued 39%
Read between the lines
-
Guidance
Effective tax rate is expected to be approximately 25% for the rest of the year.
Source quote
“We expect the effective tax rate to be approximately 25% for the remainder of the year.”
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Figure
ABG generated $4.4 billion in revenue this quarter.
Source quote
“We generated $4.4 billion in revenue.”
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Fading
Margin goals are harder to hit when winning business means being the last person standing at the auction.
Source quote
“We delivered an We generated $4.1 billion in revenue at a gross profit of $727 million, a gross profit margin of 17.7% and an expansion of 22 basis points.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Our strategic initiatives, which I will refer to as our 5 pillars, are focused on increasing new vehicle market share, reestablishing consistent growth in customer pay gross profit, driving profitable...”
“The only caveat to that is as we continue to increase used vehicles, because we have to eliminate the revenue on used vehicles but keep the gross profit in there,...”
“Markets that have been on Tekion the longest continue to demonstrate better productivity stronger customer pay performance, higher technician efficiency, and improving sales effectiveness.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 4.38B | 4.11B | +6.6% | 4.37B | +0.3% |
| Gross profit | 753.1M | 726.9M | +3.6% | 751.9M | +0.2% |
| Operating income | 219.5M | 193.9M | +13.2% | 257.4M | −14.7% |
| Net income | 114.6M | 187.8M | −39.0% | 152.8M | −25.0% |
| EPS | 6.25 | 9.87 | −36.7% | 7.76 | −19.5% |
| P/E today 6.4 | 7.5 | 6.9 | +0.6 | 8.7 | −1.2 |
Topics
Most discussed now
- New Impact is just the slow but very methodical and strategic approach to moving from a strategy that Asbury Automotive is not...
- New Going in and aggressively acquiring inventory just to hit a top line volume number and then having to offload agent...
- With 30% of Asbury Automotive's store base remaining to be rolled out as of today, the third...
- From a Tekion conversion, as I stated last quarter, it is still Asbury Automotive does not see the immediate impact that...
- Asbury Automotive delivered an adjusted operating margin of 5.3%.
Faded since Q1 2026
- Fading After which time, Asbury Automotive expects to begin fully realizing the cost and efficiency benefits enabled by the new technology…
- Fading Michael will provide additional color behind the transition and its impact on Asbury Automotive's financial performance.
- Fading It's not all the same by brand, but Asbury Automotive is still seeing a slowdown in new car sales into...
- Fading January and February were really rough for it from a weather perspective and Asbury Automotive goes far behind the 8 ball...
Latest announcements
Official filings, newest first.
- Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Articles or bylaws amended; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Articles or bylaws amended · SEC 8-K
- Director or officer change · SEC 8-K