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Group 1 Automotive (GPI) Q4 Earnings Miss Estimates, Up Y/Y
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Group 1 Automotive, Inc. (GPI - Free Report) reported adjusted earnings per share (EPS) of $2.31 in fourth-quarter 2018, missing the Zacks Consensus Estimate of $2.45. The bottom line improved from the prior-year quarter’s number of $2.11.
The company recorded net income of $30.7 million compared with $110.5 million in the year-ago quarter. Revenues of $2.9 billion declined 0.4% year over year.
Revenues from new-vehicle retail sales fell 5.3% to $1.57 billion. The same from retailed used vehicles grew 8.8% to $771.2 million. However, revenues from wholesale used-vehicle sales declined 6.2% to $86.1 million.
In the Parts and Service business, the top line improved 3.3% to $354.7 million. Also, the company’s Finance and Insurance business witnessed 8.1% rise in revenues to $124 million.
Gross profit inched up 1.5% year over year to $432.1 million. Operating income went down 18% to $74.7 million.
2018 Results
For 2018, adjusted earnings per share were $8.91, up 15.3% from 2017.
For 2018, total revenues reached a record level of $11.6 billion, up 4.3% from the 2017 figure.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
On a same-store basis, revenues in the U.S. business segment fell 1.3% year over year to $2.22 billion. New-vehicle retail sales declined 5.2% on a year-over-year basis to $1.12 billion. Total used-vehicle sales rose 4.3% to $605.6 million. Parts and Service revenues increased 2.1% year over year. Finance and Insurance revenues rose 6% on a year-over-year basis.
Revenues, on a same-store basis, fell 8% year over year to $464.6 million in the U.K. business segment. Retail new-vehicle sales declined 18.1% to $218.6 million and total used-vehicle sales rose 4.6% to $150.2 million. Parts and Service revenues improved 5.1% while Finance and Insurance revenues fell 5.5%.
On a same-store basis, revenues in the Brazil business segment declined 12.5% year over year to $109.6 million in the reported quarter. New-vehicle retail sales fell 14.5% to $70.9 million and total used-vehicle sales decreased 12.2% to $24.9 million. Parts and Service revenues declined 6.5% while Finance and Insurance revenues rose 23.2%.
Financial Details
Group 1 Automotive’s cash and cash equivalents decreased to $15.9 million as of Dec 31, 2018, from $28.8 million as of Dec 31, 2017.
Share Repurchases
In fourth-quarter 2018, Group 1 Automotive repurchased 1,313,786 outstanding shares for $75.3 million.
For 2018, the company repurchased 2,849,652 shares for $181.7 million. These repurchases represented roughly 14% of its share float at the start of 2018. As of Feb 5, 2019, Group 1 Automotive has $49.7 million worth share repurchase authorization remaining.
Zacks Rank & Stocks to Consider
Group 1 Automotive currently carries a Zacks Rank #3 (Hold).
Dana has an expected long-term growth rate of 2.9%. Over the past three months, shares of the company have risen 19.2%.
Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have surged 13.3%.
General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 7.8%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Group 1 Automotive (GPI) Q4 Earnings Miss Estimates, Up Y/Y
Group 1 Automotive, Inc. (GPI - Free Report) reported adjusted earnings per share (EPS) of $2.31 in fourth-quarter 2018, missing the Zacks Consensus Estimate of $2.45. The bottom line improved from the prior-year quarter’s number of $2.11.
The company recorded net income of $30.7 million compared with $110.5 million in the year-ago quarter. Revenues of $2.9 billion declined 0.4% year over year.
Revenues from new-vehicle retail sales fell 5.3% to $1.57 billion. The same from retailed used vehicles grew 8.8% to $771.2 million. However, revenues from wholesale used-vehicle sales declined 6.2% to $86.1 million.
In the Parts and Service business, the top line improved 3.3% to $354.7 million. Also, the company’s Finance and Insurance business witnessed 8.1% rise in revenues to $124 million.
Gross profit inched up 1.5% year over year to $432.1 million. Operating income went down 18% to $74.7 million.
2018 Results
For 2018, adjusted earnings per share were $8.91, up 15.3% from 2017.
For 2018, total revenues reached a record level of $11.6 billion, up 4.3% from the 2017 figure.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise | Group 1 Automotive, Inc. Quote
Segments in Detail
On a same-store basis, revenues in the U.S. business segment fell 1.3% year over year to $2.22 billion. New-vehicle retail sales declined 5.2% on a year-over-year basis to $1.12 billion. Total used-vehicle sales rose 4.3% to $605.6 million. Parts and Service revenues increased 2.1% year over year. Finance and Insurance revenues rose 6% on a year-over-year basis.
Revenues, on a same-store basis, fell 8% year over year to $464.6 million in the U.K. business segment. Retail new-vehicle sales declined 18.1% to $218.6 million and total used-vehicle sales rose 4.6% to $150.2 million. Parts and Service revenues improved 5.1% while Finance and Insurance revenues fell 5.5%.
On a same-store basis, revenues in the Brazil business segment declined 12.5% year over year to $109.6 million in the reported quarter. New-vehicle retail sales fell 14.5% to $70.9 million and total used-vehicle sales decreased 12.2% to $24.9 million. Parts and Service revenues declined 6.5% while Finance and Insurance revenues rose 23.2%.
Financial Details
Group 1 Automotive’s cash and cash equivalents decreased to $15.9 million as of Dec 31, 2018, from $28.8 million as of Dec 31, 2017.
Share Repurchases
In fourth-quarter 2018, Group 1 Automotive repurchased 1,313,786 outstanding shares for $75.3 million.
For 2018, the company repurchased 2,849,652 shares for $181.7 million. These repurchases represented roughly 14% of its share float at the start of 2018. As of Feb 5, 2019, Group 1 Automotive has $49.7 million worth share repurchase authorization remaining.
Zacks Rank & Stocks to Consider
Group 1 Automotive currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Dana Incorporated (DAN - Free Report) , Oshkosh Corporation (OSK - Free Report) and General Motors Company (GM - Free Report) , each currently carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dana has an expected long-term growth rate of 2.9%. Over the past three months, shares of the company have risen 19.2%.
Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have surged 13.3%.
General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 7.8%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>