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.
Group 1's (GPI) Q3 Earnings and Sales Beat, Increase Y/Y
Read MoreHide Full Article
Group 1 Automotive (GPI - Free Report) reported third-quarter 2022 adjusted earnings per share of $12, beating the Zacks Consensus Estimate of $10.99. The outperformance can be attributed to the higher-than-anticipated profit from the company’s new-vehicle retail, and Parts and Service segments. The bottom line increased 27.1% from the prior-year quarter’s $9.44 per share.
The automotive retailer registered net sales of $4,163.4 million, beating the Zacks Consensus Estimate of $4,069 million. Also, the top line rose 22% from the year-ago quarter’s $3,412.8 million.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
New-vehicle retail sales increased 24.4% from the prior-year quarter to $1,883.3 million. The figure, however, lagged the Zacks Consensus Estimate of $1,895 million. The gross profit from the unit totaled $206.7 million, increasing 28% year over year. The reported profit figure surpassed the consensus mark of $197 million.
Used-vehicle retail sales rose 21% from the year-ago period to $1,488.6 million and outpaced the consensus mark of $1,393 million. The gross profit from the unit summed $76 million, shrinking 21.6% year over year. The reported profit figure matched the consensus mark.
Used-vehicle wholesale sales fell 15.5% year over year to $89.6 million and missed the consensus mark of $93 million. The unit recorded a loss of $1.5 million against a profit of $7.4 million reported in the year-ago period. The reported figure significantly lagged the consensus mark of a profit of $1.11 million.
In the Parts and Service business, the top line rose 23.8% from the year-ago quarter’s to $515.6 million. The revenue figure topped the Zacks Consensus Estimate of $505 million. The gross profit for the segment summed $285.1 million, climbing 25.7% year over year and outpacing the consensus mark of $275 million.
Revenues from the Finance and Insurance business improved 27.6% from the prior-year period’s levels to $186.3 million, marginally beating the consensus mark of $186 million. The profit for the segment was break-even in the quarter.
Segments in Detail
In the reported quarter, revenues in the U.S. business segment climbed 30.9% year over year to $3,484.3 million. The segment’s gross profit grew 23.2% to $659.3 million. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 31,745 , 38,172 and 6,453, respectively.
In the reported period, revenues shrunk 9.5% year over year to $679.1 million for the U.K. business segment. Also, the gross profit summed $93.3 million, down 10% from the year-ago quarter. During the reported quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 7,492, 10,255 and 3,003, respectively.
Financial Position
Selling, general and administrative expenses flared up 20% year over year to $450.9 million. Group 1 Automotive had cash and cash equivalents of $20.5 million as of Sep 30, 2022, up from $14.9 million in 2021-end. Total debt was $1,942.4 million as of Sep 30, 2022, down from $2,035.7 million recorded on Dec 31, 2021.
During the current quarter, GPI repurchased 609,929 shares at an average price of $172.84 per common share for a total of $105.4 million. As of Sep 30, 2022, the company had 15.2 million common shares outstanding.
During the quarter, the company adopted a Rule 10b5-1 trading plan, effective from Oct 3-Oct 19, 2022, under which it repurchased an additional 638,072 shares subsequent to Sep 30, 2022, at an average price of $156.70, for a total amount of $100 million.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.7% downward over the past 30 days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Group 1's (GPI) Q3 Earnings and Sales Beat, Increase Y/Y
Group 1 Automotive (GPI - Free Report) reported third-quarter 2022 adjusted earnings per share of $12, beating the Zacks Consensus Estimate of $10.99. The outperformance can be attributed to the higher-than-anticipated profit from the company’s new-vehicle retail, and Parts and Service segments. The bottom line increased 27.1% from the prior-year quarter’s $9.44 per share.
The automotive retailer registered net sales of $4,163.4 million, beating the Zacks Consensus Estimate of $4,069 million. Also, the top line rose 22% from the year-ago quarter’s $3,412.8 million.
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 24.4% from the prior-year quarter to $1,883.3 million. The figure, however, lagged the Zacks Consensus Estimate of $1,895 million. The gross profit from the unit totaled $206.7 million, increasing 28% year over year. The reported profit figure surpassed the consensus mark of $197 million.
Used-vehicle retail sales rose 21% from the year-ago period to $1,488.6 million and outpaced the consensus mark of $1,393 million. The gross profit from the unit summed $76 million, shrinking 21.6% year over year. The reported profit figure matched the consensus mark.
Used-vehicle wholesale sales fell 15.5% year over year to $89.6 million and missed the consensus mark of $93 million. The unit recorded a loss of $1.5 million against a profit of $7.4 million reported in the year-ago period. The reported figure significantly lagged the consensus mark of a profit of $1.11 million.
In the Parts and Service business, the top line rose 23.8% from the year-ago quarter’s to $515.6 million. The revenue figure topped the Zacks Consensus Estimate of $505 million. The gross profit for the segment summed $285.1 million, climbing 25.7% year over year and outpacing the consensus mark of $275 million.
Revenues from the Finance and Insurance business improved 27.6% from the prior-year period’s levels to $186.3 million, marginally beating the consensus mark of $186 million. The profit for the segment was break-even in the quarter.
Segments in Detail
In the reported quarter, revenues in the U.S. business segment climbed 30.9% year over year to $3,484.3 million. The segment’s gross profit grew 23.2% to $659.3 million. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 31,745 , 38,172 and 6,453, respectively.
In the reported period, revenues shrunk 9.5% year over year to $679.1 million for the U.K. business segment. Also, the gross profit summed $93.3 million, down 10% from the year-ago quarter. During the reported quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 7,492, 10,255 and 3,003, respectively.
Financial Position
Selling, general and administrative expenses flared up 20% year over year to $450.9 million. Group 1 Automotive had cash and cash equivalents of $20.5 million as of Sep 30, 2022, up from $14.9 million in 2021-end. Total debt was $1,942.4 million as of Sep 30, 2022, down from $2,035.7 million recorded on Dec 31, 2021.
During the current quarter, GPI repurchased 609,929 shares at an average price of $172.84 per common share for a total of $105.4 million. As of Sep 30, 2022, the company had 15.2 million common shares outstanding.
During the quarter, the company adopted a Rule 10b5-1 trading plan, effective from Oct 3-Oct 19, 2022, under which it repurchased an additional 638,072 shares subsequent to Sep 30, 2022, at an average price of $156.70, for a total amount of $100 million.
Zacks Rank & Key Picks
GPI currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Genuine Parts Company (GPC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.7% downward over the past 30 days.