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Group 1 (GPI) Q4 Earnings Surpass Estimates, Rise 15% Y/Y
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Group 1 Automotive (GPI - Free Report) reported fourth-quarter 2022 adjusted earnings per share of $10.86, beating the Zacks Consensus Estimate of $10.51. The outperformance can be attributed to higher-than-anticipated gross profit from the company’s New-vehicle retail and Parts/Service segments. The bottom line increased 15.1% from the prior-year quarter’s $9.43 per share.
The automotive retailer registered net sales of $4,069 million, beating the Zacks Consensus Estimate of $3,872 million. Also, the top line rose 16.6% from the year-ago quarter’s $3,489.6 million.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
New-vehicle retail sales increased 17.7% from the prior-year quarter to $1,972.8 million. The figure surpassed the Zacks Consensus Estimate of $1,819 million. The gross profit from the unit totaled $207.4 million, increasing 7.1% year over year. The reported profit figure surpassed the consensus mark of $197 million.
Used-vehicle retail sales rose 16.1% from the year-ago period to $1,319.4 million and outpaced the consensus mark of $1,311 million. The gross profit from the unit was $60.4 million, shrinking 33.3% year over year. The reported profit figure lagged the consensus estimate of $69 million.
Used-vehicle wholesale sales fell 2.3% year over year to $85.7 million and missed the consensus mark of $87 million. The unit recorded a gross loss of $2.1 million against a profit of $4.8 million reported in the year-ago period. The loss was wider than the Zacks Consensus Estimate of $0.72 million.
In the Parts and Service business, the top line rose 18.1% from the year-ago quarter to $518.4 million. The revenue figure topped the Zacks Consensus Estimate of $495 million. The gross profit for the segment was $281.1 million, climbing 21.1% year over year and outpacing the consensus mark of $270 million.
Revenues from the Finance and Insurance business improved 15% from the prior-year period’s levels to $172.7 million, beating the consensus mark of $169 million.
Segments in Detail
In the reported quarter, revenues in the U.S. business segment climbed 19.6% year over year to $3,414.2 million. The segment’s gross profit grew 8.3% to $625.8 million. During the reported quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 32,064, 34,997 and 6,563, respectively.
In the reported period, revenues climbed 3.1% year over year to $654.8 million for the U.K. business segment. Also, the gross profit was $93.6 million, up 0.6% from the year-ago quarter. During the reported quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 7,858, 8,563 and 2,440, respectively.
Financial Position
Selling, general and administrative expenses were up 7.8% year over year to $453.8 million. Group 1 Automotive had cash and cash equivalents of $47.9 million as of Dec 31, 2022, up from $14.9 million as of 2021-end. Total debt was $2,082.5 million as of Dec 31, 2022, up from $2,035.7 million recorded on Dec 31, 2021.
During the current quarter, GPI repurchased 973,365 shares at an average price of $166.14 per common share for a total of $161.7 million. As of Dec 31, 2022, the company had 14.3 million common shares outstanding.
Group 1 adopted a Rule 10b5-1 trading plan, effective from Jan 3, 2023 to Jan 23, under which it repurchased an additional 76,294 shares after Dec 31, 2022, at an average price of $179.42, for a total amount of $13.7 million.
Zacks Rank & Key Picks
Group 1 (GPI - Free Report) currently carries a Zacks Rank #3 (Hold).
Mercedes-Benz develops, manufactures, and sells passenger cars comprising premium and luxury vehicles of the Mercedes-Benz brand. The Zacks Consensus Estimate for MBGAF’s 2022 earnings implies year-over-year growth of 213%.
Byd is principally engaged in the research, development, manufacture and distribution of automobiles as well as secondary rechargeable batteries. The Zacks Consensus Estimate for BYDDY’s 2022 sales and earnings implies year-over-year growth of 77.07% and 354.55%, respectively.
BMW is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets. The Zacks Consensus Estimate for BAMXF’s 2022 sales and earnings implies year-over-year growth of 9.04% and 30.30%, respectively.
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Group 1 (GPI) Q4 Earnings Surpass Estimates, Rise 15% Y/Y
Group 1 Automotive (GPI - Free Report) reported fourth-quarter 2022 adjusted earnings per share of $10.86, beating the Zacks Consensus Estimate of $10.51. The outperformance can be attributed to higher-than-anticipated gross profit from the company’s New-vehicle retail and Parts/Service segments. The bottom line increased 15.1% from the prior-year quarter’s $9.43 per share.
The automotive retailer registered net sales of $4,069 million, beating the Zacks Consensus Estimate of $3,872 million. Also, the top line rose 16.6% from the year-ago quarter’s $3,489.6 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 17.7% from the prior-year quarter to $1,972.8 million. The figure surpassed the Zacks Consensus Estimate of $1,819 million. The gross profit from the unit totaled $207.4 million, increasing 7.1% year over year. The reported profit figure surpassed the consensus mark of $197 million.
Used-vehicle retail sales rose 16.1% from the year-ago period to $1,319.4 million and outpaced the consensus mark of $1,311 million. The gross profit from the unit was $60.4 million, shrinking 33.3% year over year. The reported profit figure lagged the consensus estimate of $69 million.
Used-vehicle wholesale sales fell 2.3% year over year to $85.7 million and missed the consensus mark of $87 million. The unit recorded a gross loss of $2.1 million against a profit of $4.8 million reported in the year-ago period. The loss was wider than the Zacks Consensus Estimate of $0.72 million.
In the Parts and Service business, the top line rose 18.1% from the year-ago quarter to $518.4 million. The revenue figure topped the Zacks Consensus Estimate of $495 million. The gross profit for the segment was $281.1 million, climbing 21.1% year over year and outpacing the consensus mark of $270 million.
Revenues from the Finance and Insurance business improved 15% from the prior-year period’s levels to $172.7 million, beating the consensus mark of $169 million.
Segments in Detail
In the reported quarter, revenues in the U.S. business segment climbed 19.6% year over year to $3,414.2 million. The segment’s gross profit grew 8.3% to $625.8 million. During the reported quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 32,064, 34,997 and 6,563, respectively.
In the reported period, revenues climbed 3.1% year over year to $654.8 million for the U.K. business segment. Also, the gross profit was $93.6 million, up 0.6% from the year-ago quarter. During the reported quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 7,858, 8,563 and 2,440, respectively.
Financial Position
Selling, general and administrative expenses were up 7.8% year over year to $453.8 million. Group 1 Automotive had cash and cash equivalents of $47.9 million as of Dec 31, 2022, up from $14.9 million as of 2021-end. Total debt was $2,082.5 million as of Dec 31, 2022, up from $2,035.7 million recorded on Dec 31, 2021.
During the current quarter, GPI repurchased 973,365 shares at an average price of $166.14 per common share for a total of $161.7 million. As of Dec 31, 2022, the company had 14.3 million common shares outstanding.
Group 1 adopted a Rule 10b5-1 trading plan, effective from Jan 3, 2023 to Jan 23, under which it repurchased an additional 76,294 shares after Dec 31, 2022, at an average price of $179.42, for a total amount of $13.7 million.
Zacks Rank & Key Picks
Group 1 (GPI - Free Report) currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the auto space include Mercedes-Benz (MBGAF - Free Report) , Byd Co (BYDDY - Free Report) and BMW AG (BAMXF - Free Report) . All companies currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Mercedes-Benz develops, manufactures, and sells passenger cars comprising premium and luxury vehicles of the Mercedes-Benz brand. The Zacks Consensus Estimate for MBGAF’s 2022 earnings implies year-over-year growth of 213%.
Byd is principally engaged in the research, development, manufacture and distribution of automobiles as well as secondary rechargeable batteries. The Zacks Consensus Estimate for BYDDY’s 2022 sales and earnings implies year-over-year growth of 77.07% and 354.55%, respectively.
BMW is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets. The Zacks Consensus Estimate for BAMXF’s 2022 sales and earnings implies year-over-year growth of 9.04% and 30.30%, respectively.