Group 1 Automotive, Inc. (GPI - Free Report) reported adjusted earnings per share of $3.02 in third-quarter 2019, beating the Zacks Consensus Estimate of $2.72. The bottom line improved from the prior-year quarter’s $2.47. Results were aided by a stellar performance in the United States, partially offset by weakness in the U.K. market.
Revenues of $3.1 billion rose 7.9% year over year. Revenues beat the Zacks Consensus Estimate of $2.9 billion.
Reportedly, the company’s net income rose 9.2% year over year to $38 million.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
Q3 Highlights
Revenues from new-vehicle retail sales rose 7.3% to $1.65 billion. The same from used-vehicle retail sales improved 9.8% to $869.7 million. However, revenues from wholesale used-vehicle sales declined 1.5% to $85 million.
For the Parts and Service business, the top line improved 8.2% to $383.5 million. Revenues from the Finance and Insurance business rose 9.9% to $127.6 million.
Segments in Detail
Revenues in the U.S. business segment grew 10.1% year over year to $2.42 billion. The segment’s gross profit rose 9.8% year over year to $387 million. In the reported quarter, retail new-vehicle and used-vehicle, and wholesale used-vehicle units sold were 33,041; 31,505 and 7,565, respectively.
Revenues fell 0.2% year over year to $584.6 million for the U.K. business segment. Gross profit was $65 million, marking a 5.4% fall from the third quarter of 2018. In the quarter, retail new-vehicle and used-vehicle, and wholesale used-vehicle units sold were 9,329; 8,573 and 4,894, respectively.
Revenues for the Brazil business segment grew 7.7% year over year to $110.9 billion. However, the segment’s gross profit declined 2.2% year over year to $13.6 million. In the reported quarter, retail new-vehicle and used-vehicle, and wholesale used-vehicle units sold were 2,262; 1,219 and 430, respectively.
Financial Details
Group 1 Automotive’s cash and cash equivalents grew to $41 million as of Sep 30, 2019, from $15.9 million as of Dec 31, 2018. Long-term debt was $356.8 million as of Sep 30, 2019, marking a decline from $366.7 million recorded 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-Tires-Trucks sector are BRP Inc (DOOO - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), and Lithia Motors, Inc (LAD - Free Report) and America's Car-Mart, Inc (CRMT - Free Report) , carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BRP has an expected earnings growth rate of 18.4% for 2019. The company’s shares have gained 68.1% year to date.
Lithia Motors has an estimated earnings growth rate of 13.2% for 2019. Its shares have gained 102.1% year to date.
America's Car-Mart has an estimated earnings growth rate of 21.2% for 2019. Its shares have gained 24.2% year to date.
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Group 1 Automotive, Inc. (GPI - Free Report) reported adjusted earnings per share of $3.02 in third-quarter 2019, beating the Zacks Consensus Estimate of $2.72. The bottom line improved from the prior-year quarter’s $2.47. Results were aided by a stellar performance in the United States, partially offset by weakness in the U.K. market.
Revenues of $3.1 billion rose 7.9% year over year. Revenues beat the Zacks Consensus Estimate of $2.9 billion.
Reportedly, the company’s net income rose 9.2% year over year to $38 million.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
Q3 Highlights
Revenues from new-vehicle retail sales rose 7.3% to $1.65 billion. The same from used-vehicle retail sales improved 9.8% to $869.7 million. However, revenues from wholesale used-vehicle sales declined 1.5% to $85 million.
For the Parts and Service business, the top line improved 8.2% to $383.5 million. Revenues from the Finance and Insurance business rose 9.9% to $127.6 million.
Segments in Detail
Revenues in the U.S. business segment grew 10.1% year over year to $2.42 billion. The segment’s gross profit rose 9.8% year over year to $387 million. In the reported quarter, retail new-vehicle and used-vehicle, and wholesale used-vehicle units sold were 33,041; 31,505 and 7,565, respectively.
Revenues fell 0.2% year over year to $584.6 million for the U.K. business segment. Gross profit was $65 million, marking a 5.4% fall from the third quarter of 2018. In the quarter, retail new-vehicle and used-vehicle, and wholesale used-vehicle units sold were 9,329; 8,573 and 4,894, respectively.
Revenues for the Brazil business segment grew 7.7% year over year to $110.9 billion. However, the segment’s gross profit declined 2.2% year over year to $13.6 million. In the reported quarter, retail new-vehicle and used-vehicle, and wholesale used-vehicle units sold were 2,262; 1,219 and 430, respectively.
Financial Details
Group 1 Automotive’s cash and cash equivalents grew to $41 million as of Sep 30, 2019, from $15.9 million as of Dec 31, 2018. Long-term debt was $356.8 million as of Sep 30, 2019, marking a decline from $366.7 million recorded 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-Tires-Trucks sector are BRP Inc (DOOO - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), and Lithia Motors, Inc (LAD - Free Report) and America's Car-Mart, Inc (CRMT - Free Report) , carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BRP has an expected earnings growth rate of 18.4% for 2019. The company’s shares have gained 68.1% year to date.
Lithia Motors has an estimated earnings growth rate of 13.2% for 2019. Its shares have gained 102.1% year to date.
America's Car-Mart has an estimated earnings growth rate of 21.2% for 2019. Its shares have gained 24.2% year to date.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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