As you might know, Asbury Automotive Group, Inc. (NYSE:ABG) recently reported its quarterly numbers. Revenues came in 4.6% below expectations, at US$4.1b. Statutory earnings per share were relatively better off, with a per-share profit of US$6.71 being roughly in line with analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 4 warning signs about Asbury Automotive Group. View them for free.

After the latest results, the nine analysts covering Asbury Automotive Group are now predicting revenues of US$17.7b in 2025. If met, this would reflect an okay 3.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 26% to US$26.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$18.1b and earnings per share (EPS) of US$26.55 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

View our latest analysis for Asbury Automotive Group

It will come as no surprise then, that the consensus price target fell 5.3% to US$249following these changes. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Asbury Automotive Group analyst has a price target of US$297 per share, while the most pessimistic values it at US$200. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Asbury Automotive Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Asbury Automotive Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.0% annually. So it's pretty clear that, while Asbury Automotive Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Even so, earnings are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Asbury Automotive Group's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Asbury Automotive Group going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 4 warning signs for Asbury Automotive Group (1 is a bit concerning!) that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.