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Group 1 Automotive (GPI) Q1 Earnings Beat Estimates, Up Y/Y

Zacks Equity Research

Group 1 Automotive, Inc. GPI reported adjusted earnings per share of $2.06 in first-quarter 2019, beating the Zacks Consensus Estimate of $1.81. The bottom line improved from the prior-year quarter’s number of $1.70.

Reportedly, the company’s adjusted net income increased 6% year over year to $38.2 million. Revenues of $2.9 billion declined 0.4% year over year. Total revenues fell 1.8% year over year to $2.81 billion, which missed the Zacks Consensus Estimate of $2.82 billion.

Revenues from new-vehicle retail sales fell 5.3% to $1 billion. The used-vehicle retail sales grew 5.4% to $594 million. However, revenues from wholesale used-vehicle sales declined 20.7% to $42.8 million.

Group 1 Automotive, Inc. Price, Consensus and EPS Surprise

 

Group 1 Automotive, Inc. Price, Consensus and EPS Surprise | Group 1 Automotive, Inc. Quote

In the Parts and Service business, the top line improved 4.6% to $298 million. Group 1Automotive’srevenues from the Finance and Insurance business were $96 million, in line with the prior-year quarter.

Gross profit increased 3.3% year over year to $347 million. Operating income went up 9.8% to $86.8 million.

Segments in Detail

On a same-store basis, revenues in the U.S. business segment fell 1.2% year over year to $2.1 billion. The segment’s gross profit rose 4% year over year to $339 million. During the reported quarter, units of retail new vehicles, retail used vehicles and wholesale used vehicles sold were 25,569; 28,389 and 6,921.

On a same-store basis, revenues fell 8.3% year over year to $564 million in the U.K. business segment. Gross profit was $63.3 million, marking a 5.4% fall from the first quarter of 2018. The units of retail new vehicles, retail used vehicles and wholesale used vehicles sold were 9,215;7,291 and 4,870.

On a same-store basis, revenues in the Brazil business segment declined 15.9% year over year to $93.4 million in the reported quarter. Gross profit declined9.5% year over year to $11.4 million. The units of retail new vehicles, retail used vehicles and wholesale used vehicles sold were 1,850; 991 and 411.

Financial Details

Group 1 Automotive’s cash and cash equivalents increased to $33.6 million as of Mar 31, 2019, from $15.9 million as of Dec 31, 2018.

Zacks Rank & Other Key Picks

Group 1 Automotive currently carries a Zacks Rank #1 (Strong Buy). A few other top-ranked stocks in the auto space are PACCAR, Inc. PCAR, SPX Corporation SPXC and AB Volvo VLVLY. PACCAR and SPX Corp currently carry a Zacks Rank #2 (Buy) while Volvo sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

PACCAR has an expected long-term growth rate of 8.4%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 0.16% upward over the past 30 days.

SPX Corp has an expected current-year growth rate of 18.2%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 0.39% upward over the past 30 days.

Volvo has an expected long-term growth rate of 5%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 8.1% upward over the past 30 days.

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