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Group 1 Automotive (GPI) Q3 Earnings Beat Estimates, Rise Y/Y
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Group 1 Automotive, Inc. (GPI - Free Report) reported all-time record adjusted diluted earnings per share of $6.97 in third-quarter 2020, beating the Zacks Consensus Estimate of $6.56.
This outperformance stemmed from the higher-than-anticipated revenues from the used vehicle retail segment, and the parts and services segment. Moreover, the bottom line came in higher than the prior-year quarter’s $3.02 per share.
However, the automotive retailer reported net sales of $3,039.6 million, marginally lagging the Zacks Consensus Estimate of $3,043 million. Nonetheless, the top-line figure comes in 2.5% higher than the year-ago quarter’s $3,118.3 million.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
New-vehicle retail sales declined 4.3% from the prior-year quarter to $1,580.7 million. In addition, the figure trailed the Zacks Consensus Estimate of $1,623 million. Used-vehicle retail sales edged down 0.3% from the year-ago quarter to $867.2 million. The sales figure, nevertheless, handily outpaced the consensus mark of $815 million. Used-vehicle wholesale sales inched up 1.5% from the corresponding quarter last year to $86.7 million, topping the consensus mark of $68 million. For the Parts and Service business, the top line slid 7.9% from the year-ago period to $375.6 million. However, the revenue figure surpassed the Zacks Consensus Estimate of $366 million. Revenues from the Finance and Insurance business grew 2% from the prior-year period to $129.5 million, in line with the consensus mark.
Segments in Detail
For the reported quarter, revenues in the U.S. business segment dropped 7.4% year on year to $2,244.6 million. The segment’s gross profit, nonetheless, increased 7.4% year over year to $415.7 million. During the September-end quarter, retail new-vehicle, used-vehicle, and wholesale used-vehicle units sold were 27,980, 27,694 and 6,159, respectively.
For the July-September period, revenues jumped 26.7% year over year to $740.8 million for the U.K. business segment. Gross profit summed $87.6 million, marking a 34.6% rise from the third quarter of 2019. During the reported quarter, retail new-vehicle, used-vehicle, and wholesale used-vehicle units sold were 10,689, 10,101 and 5,104, respectively.
Revenues for the Brazil business segment plummeted 51.1% year over year to $54.3 million during the third quarter. Further, the segment’s gross profit plunged 36.6% year over year to $8.6 million. In the reported quarter, retail new-vehicle, used-vehicle and wholesale used-vehicle units sold were 1,200, 552 and 282, respectively.
Financial Position & Dividend
Group 1 Automotive had cash and cash equivalents of $66.2 million as of Sep 30, 2020, up from $23.8 million as of Dec 31, 2019. Long-term debt totaled $1,307.8 million as of Sep 30, 2020, down from the $1,432.1 million recorded as of Dec 31, 2019.
On Oct 6, the company announced a new $200-million share-repurchase program. Management expects to reinstate a quarterly cash dividend following its board meeting in mid-November, and payable in mid-December.
Zacks Rank & Other Key Picks
Group 1 Automotive currently flaunts a Zacks Rank #1 (Strong Buy). Shares of the company have appreciated 6.1%, year to date, while the industry witnessed a rise of 16.7%.
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
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Group 1 Automotive (GPI) Q3 Earnings Beat Estimates, Rise Y/Y
Group 1 Automotive, Inc. (GPI - Free Report) reported all-time record adjusted diluted earnings per share of $6.97 in third-quarter 2020, beating the Zacks Consensus Estimate of $6.56.
This outperformance stemmed from the higher-than-anticipated revenues from the used vehicle retail segment, and the parts and services segment. Moreover, the bottom line came in higher than the prior-year quarter’s $3.02 per share.
However, the automotive retailer reported net sales of $3,039.6 million, marginally lagging the Zacks Consensus Estimate of $3,043 million. Nonetheless, the top-line figure comes in 2.5% higher than the year-ago quarter’s $3,118.3 million.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
Group 1 Automotive, Inc. price-consensus-eps-surprise-chart | Group 1 Automotive, Inc. Quote
Q3 Highlights
New-vehicle retail sales declined 4.3% from the prior-year quarter to $1,580.7 million. In addition, the figure trailed the Zacks Consensus Estimate of $1,623 million. Used-vehicle retail sales edged down 0.3% from the year-ago quarter to $867.2 million. The sales figure, nevertheless, handily outpaced the consensus mark of $815 million. Used-vehicle wholesale sales inched up 1.5% from the corresponding quarter last year to $86.7 million, topping the consensus mark of $68 million. For the Parts and Service business, the top line slid 7.9% from the year-ago period to $375.6 million. However, the revenue figure surpassed the Zacks Consensus Estimate of $366 million. Revenues from the Finance and Insurance business grew 2% from the prior-year period to $129.5 million, in line with the consensus mark.
Segments in Detail
For the reported quarter, revenues in the U.S. business segment dropped 7.4% year on year to $2,244.6 million. The segment’s gross profit, nonetheless, increased 7.4% year over year to $415.7 million. During the September-end quarter, retail new-vehicle, used-vehicle, and wholesale used-vehicle units sold were 27,980, 27,694 and 6,159, respectively.
For the July-September period, revenues jumped 26.7% year over year to $740.8 million for the U.K. business segment. Gross profit summed $87.6 million, marking a 34.6% rise from the third quarter of 2019. During the reported quarter, retail new-vehicle, used-vehicle, and wholesale used-vehicle units sold were 10,689, 10,101 and 5,104, respectively.
Revenues for the Brazil business segment plummeted 51.1% year over year to $54.3 million during the third quarter. Further, the segment’s gross profit plunged 36.6% year over year to $8.6 million. In the reported quarter, retail new-vehicle, used-vehicle and wholesale used-vehicle units sold were 1,200, 552 and 282, respectively.
Financial Position & Dividend
Group 1 Automotive had cash and cash equivalents of $66.2 million as of Sep 30, 2020, up from $23.8 million as of Dec 31, 2019. Long-term debt totaled $1,307.8 million as of Sep 30, 2020, down from the $1,432.1 million recorded as of Dec 31, 2019.
On Oct 6, the company announced a new $200-million share-repurchase program. Management expects to reinstate a quarterly cash dividend following its board meeting in mid-November, and payable in mid-December.
Zacks Rank & Other Key Picks
Group 1 Automotive currently flaunts a Zacks Rank #1 (Strong Buy). Shares of the company have appreciated 6.1%, year to date, while the industry witnessed a rise of 16.7%.
Some other top-ranked stocks in the auto sector are Lear Corporation (LEA - Free Report) , Autoliv Inc (ALV - Free Report) and LCI Industries (LCII - Free Report) , all of which sport a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>