Group 1 Automotive, Inc. (GPI - Free Report) reported third-quarter 2021 adjusted earnings per share of $9.62, beating the Zacks Consensus Estimate of $9.08. This outperformance stemmed from the higher-than-anticipated gross profit from the company’s New-vehicle retail, Used-vehicle retail, Parts & Service and Finance & Insurance segments. Moreover, the bottom line comes in higher than the prior-year quarter’s $6.97 per share, marking growth of 38%.
The automotive retailer registered net sales of $3,509.2 million, marginally beating the Zacks Consensus Estimate of $3,503 million. Also, the top-line figure comes in 15.4% higher than the year-ago quarter’s $3,039.6 million.
Q3 Highlights
The new-vehicle retail sales edged down 0.3% from the prior-year quarter to $1,576.2 million. In addition, the figure trailed the Zacks Consensus Estimate of $1,755 million. Also, the gross profit from the unit totaled $167.7 million, soaring 69% year over year. The reported profit figure also surpassed the consensus mark of $161 million.
The used-vehicle retail sales rose 44% from the year-ago period to $1,248.3 million. The sales figure also outpaced the consensus mark of $1,032 million. Further, the gross profit from the unit summed $98.6 million, jumping 38.6% year over year. The reported profit figure also beat the consensus mark of $94 million.
The used-vehicle wholesale sales climbed 26.2% from the corresponding quarter last year to $109.4 million, beating the consensus mark of $102 million. The gross profit from used-vehicle wholesale sales amounted to $7.6 million compared with the $1.7 million reported in the year-ago period. The reported figure, however, missed the consensus mark of $9.7 million.
For the Parts and Service business, the top line rose 13.8% from the year-ago period to $427.6 million. In addition, the revenue figure topped the Zacks Consensus Estimate of $402 million. The gross profit for the segment summed $231.7 million, climbing 12.3% year on year and breezing past the consensus mark of $221 million.
Revenues from the Finance and Insurance business improved 14.1% from the prior-year period to $147.7 million, marginally topping the consensus mark of $144 million. The segmental gross profit of $147.7 million grew 14.1% on a yearly basis and also smashed the consensus estimate of $144 million.
Segments in Detail
For the reported quarter, revenues in the U.S. business segment climbed 18.6% year on year to $2,662.4 million. The segment’s gross profit also scaled up 28.7% year over year to $535 million. During the September-end quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 25,984, 31,704 and 6,758, respectively.
In the July-September period, revenues inched up 1.3% year over year to $750.4 million for the U.K. business segment. Also, the gross profit summed $103.7 million, up 18.3% from the third quarter of 2020. During the reported quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 7,381, 10,810 and 4,202, respectively.
Revenues for the Brazil business segment jumped 77.7% year over year to $96.4 million during the third quarter. Further, the segment’s gross profit increased 68.7% year over year to $14.5 million. In the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 1,761, 726 and 301, respectively.
Financial Position
Group 1 Automotive had cash and cash equivalents of $296.9 million as of Sep 30, 2021, up from $66.2 million in the corresponding period of 2020. The long-term debt totaled $1,333.9 million as of Sep 30, 2021, up from the $1,307.8 million recorded in the comparable period of 2020.
Group 1 Automotive, peers of which include AutoNation (AN - Free Report) , Lithia Motors (LAD - Free Report) and Penske Automotive (PAG - Free Report) , currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Group 1 Automotive, Inc. (GPI - Free Report) reported third-quarter 2021 adjusted earnings per share of $9.62, beating the Zacks Consensus Estimate of $9.08. This outperformance stemmed from the higher-than-anticipated gross profit from the company’s New-vehicle retail, Used-vehicle retail, Parts & Service and Finance & Insurance segments. Moreover, the bottom line comes in higher than the prior-year quarter’s $6.97 per share, marking growth of 38%.
The automotive retailer registered net sales of $3,509.2 million, marginally beating the Zacks Consensus Estimate of $3,503 million. Also, the top-line figure comes in 15.4% higher than the year-ago quarter’s $3,039.6 million.
Q3 Highlights
The new-vehicle retail sales edged down 0.3% from the prior-year quarter to $1,576.2 million. In addition, the figure trailed the Zacks Consensus Estimate of $1,755 million. Also, the gross profit from the unit totaled $167.7 million, soaring 69% year over year. The reported profit figure also surpassed the consensus mark of $161 million.
The used-vehicle retail sales rose 44% from the year-ago period to $1,248.3 million. The sales figure also outpaced the consensus mark of $1,032 million. Further, the gross profit from the unit summed $98.6 million, jumping 38.6% year over year. The reported profit figure also beat the consensus mark of $94 million.
The used-vehicle wholesale sales climbed 26.2% from the corresponding quarter last year to $109.4 million, beating the consensus mark of $102 million. The gross profit from used-vehicle wholesale sales amounted to $7.6 million compared with the $1.7 million reported in the year-ago period. The reported figure, however, missed the consensus mark of $9.7 million.
For the Parts and Service business, the top line rose 13.8% from the year-ago period to $427.6 million. In addition, the revenue figure topped the Zacks Consensus Estimate of $402 million. The gross profit for the segment summed $231.7 million, climbing 12.3% year on year and breezing past the consensus mark of $221 million.
Revenues from the Finance and Insurance business improved 14.1% from the prior-year period to $147.7 million, marginally topping the consensus mark of $144 million. The segmental gross profit of $147.7 million grew 14.1% on a yearly basis and also smashed the consensus estimate of $144 million.
Segments in Detail
For the reported quarter, revenues in the U.S. business segment climbed 18.6% year on year to $2,662.4 million. The segment’s gross profit also scaled up 28.7% year over year to $535 million. During the September-end quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 25,984, 31,704 and 6,758, respectively.
In the July-September period, revenues inched up 1.3% year over year to $750.4 million for the U.K. business segment. Also, the gross profit summed $103.7 million, up 18.3% from the third quarter of 2020. During the reported quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 7,381, 10,810 and 4,202, respectively.
Revenues for the Brazil business segment jumped 77.7% year over year to $96.4 million during the third quarter. Further, the segment’s gross profit increased 68.7% year over year to $14.5 million. In the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 1,761, 726 and 301, respectively.
Financial Position
Group 1 Automotive had cash and cash equivalents of $296.9 million as of Sep 30, 2021, up from $66.2 million in the corresponding period of 2020. The long-term debt totaled $1,333.9 million as of Sep 30, 2021, up from the $1,307.8 million recorded in the comparable period of 2020.
Group 1 Automotive, peers of which include AutoNation (AN - Free Report) , Lithia Motors (LAD - Free Report) and Penske Automotive (PAG - Free Report) , currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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