Back to top

Image: Bigstock

Group 1 (GPI) Earnings & Sales Top Estimates in Q1, Up Y/Y

Read MoreHide Full Article

Group 1 Automotive, Inc. (GPI - Free Report) reported first-quarter 2022 adjusted earnings per share of $10.81, beating the Zacks Consensus Estimate of $9.45. The outperformance can be attributed to the higher-than-anticipated sales from the company’s new-vehicle retail, used-vehicle retail and Finance and Insurance segments. The bottom line increased from the prior-year quarter’s $5.57 per share, marking growth of 94.1%.  

The automotive retailer registered net sales of $3,844.4 million, beating the Zacks Consensus Estimate of $3,767.2 million. Also, the top line rose 27.7% from the year-ago quarter’s $3,010 million.

Group 1 Automotive, Inc. Price, Consensus and EPS Surprise

Group 1 Automotive, Inc. Price, Consensus and EPS Surprise

Group 1 Automotive, Inc. price-consensus-eps-surprise-chart | Group 1 Automotive, Inc. Quote

Quarter Highlights

New-vehicle retail sales increased 15.6% from the prior-year quarter’s levels to $1,745.1 million. The figure topped the Zacks Consensus Estimate of $1,718 million. The gross profit from the unit totaled $201.3 million, soaring 110.4% year over year. The reported profit figure also surpassed the consensus mark of $191 million.

Used-vehicle retail sales rose 53.1% from the year-ago period to $1,359.9 million. The sales figure also outpaced the consensus mark of $1,220 million. The gross profit from the unit summed $87.8 million, jumping 50.2% year over year. The reported profit figure, however, missed the consensus mark of $95 million.

Used-vehicle wholesale sales climbed 19.5% from the corresponding quarter last year to $93.5 million but missed the consensus mark of $96 million. The gross profit from used-vehicle wholesale sales fell to $2.8 million from $3.8 million reported in the year-ago period. The reported figure missed the consensus mark of $4.73 million.

In the Parts and Service business, the top line rose 34% from the year-ago quarter’s to $472.9 million. The revenue figure lagged the Zacks Consensus Estimate of $566 million. The gross profit for the segment summed $259.8 million, climbing 31.4% year on year but missing the consensus mark of $304 million.

Revenues from the Finance and Insurance business improved 37.7% from the prior-year period’s levels to $173 million, topping the consensus mark of $140 million. The profit for the segment was break-even.

Segments in Detail

In the reported quarter, revenues in the U.S. business segment climbed 28.6% year over year to $3,091.3 million. The segment’s gross profit surged 49.5% to $620.9 million. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 29,498, 33,940 and 6,001, respectively.

In the reported period, revenues jumped 37% year over year to $753 million for the U.K. business segment. Also, the gross profit summed $103.8 million, up 57.3% from the year-ago quarter. During the reported quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 7,235, 9,866 and 3,098, respectively.

Financial Position

Group 1 Automotive had cash and cash equivalents of $16.6 million as of Mar 31, 2022, down from $14.9 million in the corresponding period of 2021. Total debt was $1,988.7 million as of Mar 31, 2022, down from the $2,035.7 million recorded on Dec 31, 2021.

During the current quarter, GPI repurchased 638,696 shares at an average price of $180.3 per common share for a total of $115.2 million. As of Mar 31, 2022, the company had 16.7 million common shares outstanding.

Zacks Rank & Other Key Picks

GPI currently carries a Zacks Rank #2 (Buy).

Other top-ranked players in the auto space include BRP Group, Inc. (DOOO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Dorman Products (DORM - Free Report) and Tesla Inc. (TSLA - Free Report) , each carrying a Zacks Rank #2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.

BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 11% over the past year.

Dorman Products has an expected earnings growth rate of 18.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.7% upwards in the past 60 days.

Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 2.1% over the past year.

Tesla has an expected earnings growth rate of 66.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 18.7% upward in the past 60 days.

Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 41.27%, on average. The stock has gained 31.8% over the past year.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Group 1 Automotive, Inc. (GPI) - free report >>

Tesla, Inc. (TSLA) - free report >>

Dorman Products, Inc. (DORM) - free report >>

BRP Inc. (DOOO) - free report >>