We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What Should Investors Expect From Group 1 (GPI) Q4 Earnings?
Read MoreHide Full Article
Group 1 Automotive (GPI - Free Report) is slated to release fourth-quarter 2021 results on Feb 10, before market open. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $9.06 per share and $3.48 billion, respectively.
This automotive retailer came out with stellar earnings in the last reported quarter on higher-than-anticipated gross profit from New-vehicle retail, Used-vehicle retail, Parts & Service and Finance & Insurance units. The company surpassed estimates in three of the preceding four quarters and missed once, with the average surprise being 7.96%. This is depicted in the graph below:
The Zacks Consensus Estimate for Group1’s fourth-quarter earnings per share has moved north by 14 cents in the past 30 days. The bottom-line projection implies year-on-year growth of 60%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 16.4%.
Earnings Whispers
Our proven model predicts an earnings beat for Group 1 this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This has been elaborated below.
Earnings ESP: Group 1 has an Earnings ESP of +0.63%. This is because the Most Accurate Estimate is pegged 6 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Courtesy of economic recovery from the pandemic lows and preference for personal mobility, demand for vehicles has been on the rise, which is likely to have aided sales of Lithia. Encouragingly, the auto retailer is expected to post a year-over-year increase in fourth-quarter revenues across all units.
Here’s a sneak peek into the Zacks Consensus Estimate for the firm’s revenues and gross profits from major units.
For the quarter in discussion, the Zacks Consensus Estimate for revenues from New Vehicle Retail, which has the highest contribution to the company’s revenues, is pegged at $1,680 million, indicating an increase from the $1,595.3 million reported in the year-ago period. The consensus mark for gross profit from the segment is pegged at $155 million, suggesting an improvement from the $105 million recorded in the prior-year quarter.
The consensus estimate for revenues from Used-Vehicle Retail for the September-December period is pegged at $917 million, suggesting a rise from the $818.2 million recorded in fourth-quarter 2020. The consensus mark for gross profit from the segment is pinned at $80 million, calling for a surge from the $49.2 million recorded in the prior-year period.
The consensus mark for revenues from Used-Vehicle Wholesale for the December-end quarter is pinned at $97 million, suggesting a rise from the $86.2 million recorded in fourth-quarter 2020. The consensus mark for quarterly gross profit from the segment is pinned at $8.7 million, calling for a jump from $2 million recorded in the year-earlier quarter.
The Zacks Consensus Estimate for quarterly revenues and profit from the Parts and Service segment is pinned at $437 million and $240 million, implying growth from the $316.2 million and $197 million reported in the prior-year period, respectively.
The Zacks Consensus Estimate for quarterly revenues from the Finance and Insurance business is pegged at $132 million, suggesting a rise from the $129.3 million recorded in fourth-quarter 2020.
During the quarter to be reported, Group 1 diversified its U.S. foothold by acquiring 27 Prime Automotive Group dealerships. This optimized its portfolio and is likely to boost the upcoming results. Also, the AcceleRide platform — Group 1’s online retailing initiative that is active at most of the firm’s U.S. dealerships — is likely to have buoyed the top line in the fourth quarter. The company’s continued cost discipline is anticipated to have driven margins.
Other Stocks With Favorable Combinations
Here are a few other auto retailers, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Advance Auto Parts (AAP - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 14.
The Zacks Consensus Estimate for Advance Auto’s to-be-reported quarter’s earnings and revenues is pegged at $1.95 per share and $2.36 billion, respectively. AAP surpassed earnings estimates in three of the last four quarters and missed once, with an average surprise of 9.01%.
Asbury Automotive (ABG - Free Report) has an Earnings ESP of +3.38% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for Asbury’s to-be-reported quarter’s earnings and revenues is pegged at $5.86 per share and $2.45 billion, respectively. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%.
Sonic Automotive (SAH - Free Report) has an Earnings ESP of +8.11% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 16.
The Zacks Consensus Estimate for Sonic’s to-be-reported quarter’s earnings and revenues is pegged at $1.85 per share and $3.20 billion, respectively. SAH surpassed earnings estimates in the last four quarters, with an average of 25.4%.
Image: Bigstock
What Should Investors Expect From Group 1 (GPI) Q4 Earnings?
Group 1 Automotive (GPI - Free Report) is slated to release fourth-quarter 2021 results on Feb 10, before market open. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $9.06 per share and $3.48 billion, respectively.
This automotive retailer came out with stellar earnings in the last reported quarter on higher-than-anticipated gross profit from New-vehicle retail, Used-vehicle retail, Parts & Service and Finance & Insurance units. The company surpassed estimates in three of the preceding four quarters and missed once, with the average surprise being 7.96%. This is depicted in the graph below:
Group 1 Automotive, Inc. Price and EPS Surprise
Group 1 Automotive, Inc. price-eps-surprise | Group 1 Automotive, Inc. Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for Group1’s fourth-quarter earnings per share has moved north by 14 cents in the past 30 days. The bottom-line projection implies year-on-year growth of 60%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 16.4%.
Earnings Whispers
Our proven model predicts an earnings beat for Group 1 this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This has been elaborated below.
Earnings ESP: Group 1 has an Earnings ESP of +0.63%. This is because the Most Accurate Estimate is pegged 6 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Group 1 currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors
Courtesy of economic recovery from the pandemic lows and preference for personal mobility, demand for vehicles has been on the rise, which is likely to have aided sales of Lithia. Encouragingly, the auto retailer is expected to post a year-over-year increase in fourth-quarter revenues across all units.
Here’s a sneak peek into the Zacks Consensus Estimate for the firm’s revenues and gross profits from major units.
For the quarter in discussion, the Zacks Consensus Estimate for revenues from New Vehicle Retail, which has the highest contribution to the company’s revenues, is pegged at $1,680 million, indicating an increase from the $1,595.3 million reported in the year-ago period. The consensus mark for gross profit from the segment is pegged at $155 million, suggesting an improvement from the $105 million recorded in the prior-year quarter.
The consensus estimate for revenues from Used-Vehicle Retail for the September-December period is pegged at $917 million, suggesting a rise from the $818.2 million recorded in fourth-quarter 2020. The consensus mark for gross profit from the segment is pinned at $80 million, calling for a surge from the $49.2 million recorded in the prior-year period.
The consensus mark for revenues from Used-Vehicle Wholesale for the December-end quarter is pinned at $97 million, suggesting a rise from the $86.2 million recorded in fourth-quarter 2020. The consensus mark for quarterly gross profit from the segment is pinned at $8.7 million, calling for a jump from $2 million recorded in the year-earlier quarter.
The Zacks Consensus Estimate for quarterly revenues and profit from the Parts and Service segment is pinned at $437 million and $240 million, implying growth from the $316.2 million and $197 million reported in the prior-year period, respectively.
The Zacks Consensus Estimate for quarterly revenues from the Finance and Insurance business is pegged at $132 million, suggesting a rise from the $129.3 million recorded in fourth-quarter 2020.
During the quarter to be reported, Group 1 diversified its U.S. foothold by acquiring 27 Prime Automotive Group dealerships. This optimized its portfolio and is likely to boost the upcoming results. Also, the AcceleRide platform — Group 1’s online retailing initiative that is active at most of the firm’s U.S. dealerships — is likely to have buoyed the top line in the fourth quarter. The company’s continued cost discipline is anticipated to have driven margins.
Other Stocks With Favorable Combinations
Here are a few other auto retailers, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Advance Auto Parts (AAP - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 14.
The Zacks Consensus Estimate for Advance Auto’s to-be-reported quarter’s earnings and revenues is pegged at $1.95 per share and $2.36 billion, respectively. AAP surpassed earnings estimates in three of the last four quarters and missed once, with an average surprise of 9.01%.
Asbury Automotive (ABG - Free Report) has an Earnings ESP of +3.38% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for Asbury’s to-be-reported quarter’s earnings and revenues is pegged at $5.86 per share and $2.45 billion, respectively. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%.
Sonic Automotive (SAH - Free Report) has an Earnings ESP of +8.11% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 16.
The Zacks Consensus Estimate for Sonic’s to-be-reported quarter’s earnings and revenues is pegged at $1.85 per share and $3.20 billion, respectively. SAH surpassed earnings estimates in the last four quarters, with an average of 25.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.