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Group 1 Automotive (GPI) Q2 Earnings Beat Estimates, Up Y/Y

Zacks Equity Research

Group 1 Automotive, Inc. GPI reported adjusted earnings per share of $2.83 in second-quarter 2019, beating the Zacks Consensus Estimate of $2.74. The bottom line improved from the prior-year quarter’s number of $2.45. Results were aided by a stellar performance in the United States despite softness in sales in the new vehicle market.

Reportedly, the company’s net income decreased 12.8% year over year to $49.2 million. Revenues of $3.01 billion increased 2.1% year over year. Revenues beat the Zacks Consensus Estimate of $2.9 billion.

Revenues from new-vehicle retail sale rose 0.6% to $1.57 billion. The same from used-vehicle retail sale increased 2.1% to $838.9 million. Also, revenues from wholesale used-vehicle sale increased 3.4% to $96 million.

In the Parts and Service business, the top line improved 5.6% to $378.2 million. Revenues from the Finance and Insurance business rose 10.6% to $127.3 million.

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

 

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

Group 1 Automotive, Inc. price-consensus-eps-surprise-chart | Group 1 Automotive, Inc. Quote

Segments in Detail

Revenues in the U.S. business segment increased 15.1% year over year to $2.28 billion. The segment’s gross profit rose 7.4% year over year to $336.7 million. In the reported quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 20,318; 30,477 and 6,828, respectively.

Revenues fell 2.5% year over year to $614.4 million in the U.K. business segment. Gross profit was $64.1 million, marking a 14.3% fall from the second quarter of 2018. In the quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 9,266; 8,280 and 5,772, respectively.

Financial Details

Group 1 Automotive’s cash and cash equivalents increased to $37.7 million as of Jun 30, 2019, from $15.9 million as of Dec 31, 2018.

Zacks Rank & Stocks to Consider

Group 1 Automotive currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Copart, Inc CPRT, CarMax, Inc KMX and Advance Auto Parts, Inc. AAP. While Copart sports a Zacks Rank #1 (Strong Buy), CarMax and Advance Auto Parts has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have shot up 39%.

CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have rallied 19.4%.

Advance Auto Parts has an expected long-term growth rate of 11.6%. In the past year, shares of the company have improved 7.3%.

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