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Group 1 (GPI) Excites Investors With Preliminary Q2 Results
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Group 1 Automotive (GPI - Free Report) released impressive preliminary second-quarter 2021 results despite the ongoing chip dearth, following which its shares rose 8.35% yesterday. The company has been able to navigate the challenges fairly well, as is evident from strong earnings and sales projections. The auto retailer anticipates adjusted earnings of $10.20-$10.70 per share, indicating an increase from $5.57 recorded in the prior quarter. The bottom-line projection for the to-be-reported quarter also suggests a significant uptick from $3.77 a share reported in second-quarter 2020, when it was heavily hit by coronavirus woes. Solid vehicle margins in the United States, recovery in the U.K. market, operational discipline and strength in the U.S. service business are likely to aid Group 1’s results for second-quarter 2021.
Group 1 expects gross profit from the U.S. parts and service to improve from pre-pandemic levels on a same-store basis. The metric is expected to rise 10% from second-quarter 2019. Used retail unit sales totaled 45,000 units for second-quarter 2021, up 49% and 12% from the comparable periods of 2020 and 2019, respectively. Meanwhile, new retail unit sales totaled 42,600 units, up 61% from second-quarter 2020 but down 1% from the comparable period of 2019. The company exited second-quarter 2021 with U.S. new and used vehicle inventories of 5,400 and 12,800 units, respectively.
A couple of days back, Group 1 announced the acquisition of nine businesses northeast of London, in a bid to bolster its U.K. footprint. The buyouts will add approximately $300 million to the company’s annual revenues, driven by an Audi dealership in Norwich along with Volkswagen brand operations in Norwich, Peterborough, and Lowestoft. Through the latest transaction, Group 1 now has a total of 55 locations with 75 franchises, representing 14 auto brands in the United Kingdom.
Group 1 — which shares space with Americas CarMart (CRMT - Free Report) , Lithia Motors (LAD - Free Report) and Penske Automotive (PAG - Free Report) — currently flaunts a Zacks Rank #1 (Strong Buy). Group 1’s diversified product mix and multiple streams of income along with omnichannel efforts to boost sales bode well. Its digital efforts focused on the online customer scheduling-appointment system are also enhancing customer experience. The AcceleRide platform, its online retailing initiative that is active at all the firm’s U.S. dealerships, is likely to aid Group 1’s long-term prospects. The firm’s cost-containment efforts are aiding margins. Given the tailwinds, the stock is set to continue its momentum and is thus viewed as a lucrative bet at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Group 1 (GPI) Excites Investors With Preliminary Q2 Results
Group 1 Automotive (GPI - Free Report) released impressive preliminary second-quarter 2021 results despite the ongoing chip dearth, following which its shares rose 8.35% yesterday. The company has been able to navigate the challenges fairly well, as is evident from strong earnings and sales projections. The auto retailer anticipates adjusted earnings of $10.20-$10.70 per share, indicating an increase from $5.57 recorded in the prior quarter. The bottom-line projection for the to-be-reported quarter also suggests a significant uptick from $3.77 a share reported in second-quarter 2020, when it was heavily hit by coronavirus woes. Solid vehicle margins in the United States, recovery in the U.K. market, operational discipline and strength in the U.S. service business are likely to aid Group 1’s results for second-quarter 2021.
Group 1 expects gross profit from the U.S. parts and service to improve from pre-pandemic levels on a same-store basis. The metric is expected to rise 10% from second-quarter 2019. Used retail unit sales totaled 45,000 units for second-quarter 2021, up 49% and 12% from the comparable periods of 2020 and 2019, respectively. Meanwhile, new retail unit sales totaled 42,600 units, up 61% from second-quarter 2020 but down 1% from the comparable period of 2019. The company exited second-quarter 2021 with U.S. new and used vehicle inventories of 5,400 and 12,800 units, respectively.
A couple of days back, Group 1 announced the acquisition of nine businesses northeast of London, in a bid to bolster its U.K. footprint. The buyouts will add approximately $300 million to the company’s annual revenues, driven by an Audi dealership in Norwich along with Volkswagen brand operations in Norwich, Peterborough, and Lowestoft. Through the latest transaction, Group 1 now has a total of 55 locations with 75 franchises, representing 14 auto brands in the United Kingdom.
Group 1 — which shares space with Americas CarMart (CRMT - Free Report) , Lithia Motors (LAD - Free Report) and Penske Automotive (PAG - Free Report) — currently flaunts a Zacks Rank #1 (Strong Buy). Group 1’s diversified product mix and multiple streams of income along with omnichannel efforts to boost sales bode well. Its digital efforts focused on the online customer scheduling-appointment system are also enhancing customer experience. The AcceleRide platform, its online retailing initiative that is active at all the firm’s U.S. dealerships, is likely to aid Group 1’s long-term prospects. The firm’s cost-containment efforts are aiding margins. Given the tailwinds, the stock is set to continue its momentum and is thus viewed as a lucrative bet at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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