Why is Asbury Automotive stock sliding today?

Shares of Asbury Automotive stock slipped 1.0% in pre-open trading after the company reported Q3 2026 results before the market opened, delivering earnings and revenue that both missed analyst forecasts.

The company posted net income of $105 million, or $5.84 per diluted share, a decrease of 29% from $147 million in the third quarter of 2025, while adjusted EPS came in at $6.16 — well below the consensus estimate of approximately $6.60 to $7.03. Revenue fell 8% to $4.4 billion, also missing the roughly $4.51–$4.61 billion analysts had projected.

The earnings shortfall was compounded by deteriorating unit economics and rising costs. Finance and insurance revenue per vehicle retailed came in at $2,176, while gross margin held at 16.6%, but the adjusted figures excluded Tekion implementation expenses and duplicative DMS-related costs that weighed on the reported results.

Adding to the pressure, MarketBeat’s Q3 earnings page noted that Morgan Stanley lowered its price target on ABG today, while Barclays had already restated a "reduce" rating on the stock as recently as October 6th.

The pre-market weakness stood in contrast to a broadly constructive session for U.S. equities, with the S&P 500 gaining 0.3%, the Dow Jones rising 0.3%, and the Nasdaq advancing 0.5%, underscoring that ABG’s decline was driven entirely by company-specific factors.

Over the past year, the stock has experienced a significant decline, with a 52-week high of $258.75 and a low of $160.30, reflecting a prolonged de-rating as earnings estimates have steadily eroded.

Taken together, a meaningful earnings and revenue miss, ongoing cost headwinds from the Tekion platform conversion, and a freshly lowered analyst price target combined to push ABG lower in pre-market trading, keeping the stock near the lower end of its 52-week range and reinforcing investor caution ahead of the 10:00 a.m. ET earnings conference call.