Asbury Automotive Group (ABG) reported strong fourth-quarter results, with earnings per share and revenue surpassing Wall Street estimates. The company's performance was driven by solid revenue growth across its business segments.

For the quarter ended December 31, 2024, Asbury reported:

Earnings:

• Adjusted diluted earnings per share (EPS) of $7.26, beating the consensus estimate of $6.04
• GAAP net income of $128.8 million, or $6.54 per diluted share

Revenue:

• Total revenue of $4.50 billion, up 18.2% year-over-year, and exceeding expectations of $4.16 billion
• New vehicle revenue increased by 19% to $2.46 billion
• Used vehicle retail revenue grew 14% to $1.10 billion
• Parts and service revenue rose 15% to $590.4 million
• Finance and insurance revenue climbed 16% to $198.5 million

The company's strong performance was driven by robust demand for new and used vehicles, as well as strong performance in its parts and service and finance and insurance segments. Asbury's gross profit margin, however, fell by 101 basis points to 16.6% due to higher costs.

Looking ahead, Asbury remains optimistic about its growth prospects, driven by strategic investments in technology and its continued focus on operational efficiency and customer experience.