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 (GPI) Q4 Earnings Miss Estimates, Revenues Beat
Read MoreHide Full Article
Group 1 Automotive (GPI - Free Report) reported fourth-quarter 2023 adjusted earnings per share of $9.50, missing the Zacks Consensus Estimate of $10.49. The bottom line also decreased from the prior-year quarter’s earnings of $10.86 per share. The automotive retailer registered net sales of $4.48 billion, beating the Zacks Consensus Estimate of $4.38 billion. Also, the top line rose from the year-ago quarter’s $4.07 billion.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
New vehicle retail sales increased 17.2% from the prior-year quarter to $2.3 billion and exceeded our projection of $2.13 billion on the back of higher-than-expected volumes and average selling prices. Total retail new vehicles sold were 45,827 units, increasing 14.8% year over year and surpassing our forecast of 42,689 units on improving inventory levels and robust demand despite the high costs of vehicle financing. Average selling price per unit was $50,760, up 2.7% year over year. The gross profit from the new vehicle retail unit totaled $184.5 million, decreasing 11.1% year over year.
Used-vehicle retail sales inched up 1.1% from the year-ago period to $1.33 billion and outpaced our forecast by $1.3 billion on higher-than-expected average selling prices. Total retail used vehicles sold were 44,656 units, up 2.5% year over year but below our expectation of 44,979 units. Average selling price per unit came in at $29,884, down 1.3% year over year. However, the metric exceeded our expectation of $27,515 million. The gross profit from the unit was $64.1 million, rising 6.1% year over year.
Used-vehicle wholesale sales rose 19.3% year over year to $102.3 million and beat our expectation of $91.7 million. The unit recorded a gross loss of $4.3 million, widening from $2.1 million incurred in the year-ago period. In the Parts and Service business, the top line rose 5.1% from the year-ago quarter to $545 million and gross profit increased 6.5% year over year to $299.3 million. Revenues from the Finance and Insurance (F&I) business came in at $187.1 million, up 8.4% from the year-ago period levels.
Segments in Detail
In the reported quarter, revenues from the U.S. business segment climbed 10.5% year over year to $3.77 billion and exceeded our forecast of $3.55 billion, largely on solid sales of new vehicles. The segment’s gross profit grew 2.3% to $640.2 million and came ahead of our prediction by $5 million. During the reported quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 38,152, 35,195 and 8,160, respectively.
In the reported period, revenues rose 8.1% year over year to $707.5 million for the U.K. business segment, falling short of our estimate of $713 million due to lower-than-expected sales of new vehicles. Gross profit was $90.5 million, down 3.4% from the year-ago quarter and missing our projection of $96.4 million. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 7,675, 9,461 and 2,996, respectively.
Financial Position
Selling, general and administrative expenses were up 7.4% year over year to $487.4 million. Group 1 had cash and cash equivalents of $57.2 million as of Dec 31, 2023, up from $47.9 million as of 2022-end. Total debt was $2.1 billion as of Dec 31, 2023, up from $2.08 million recorded on Dec 31, 2022.
During the quarter under discussion, GPI repurchased 160,968 shares at an average price of $262.25 per common share for a total of $42.2 million. The company currently has $143.3 million remaining on its authorized stock buyback program.
The Zacks Consensus Estimate for HMC’s fiscal 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 7 cents and 5 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 27.3% and 35.3%, respectively. The EPS estimate for 2024 has improved 31 cents in the past 30 days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales suggests year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have improved a penny and 30 cents, respectively, in the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Group 1 (GPI) Q4 Earnings Miss Estimates, Revenues Beat
Group 1 Automotive (GPI - Free Report) reported fourth-quarter 2023 adjusted earnings per share of $9.50, missing the Zacks Consensus Estimate of $10.49. The bottom line also decreased from the prior-year quarter’s earnings of $10.86 per share. The automotive retailer registered net sales of $4.48 billion, beating the Zacks Consensus Estimate of $4.38 billion. Also, the top line rose from the year-ago quarter’s $4.07 billion.
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 17.2% from the prior-year quarter to $2.3 billion and exceeded our projection of $2.13 billion on the back of higher-than-expected volumes and average selling prices. Total retail new vehicles sold were 45,827 units, increasing 14.8% year over year and surpassing our forecast of 42,689 units on improving inventory levels and robust demand despite the high costs of vehicle financing. Average selling price per unit was $50,760, up 2.7% year over year. The gross profit from the new vehicle retail unit totaled $184.5 million, decreasing 11.1% year over year.
Used-vehicle retail sales inched up 1.1% from the year-ago period to $1.33 billion and outpaced our forecast by $1.3 billion on higher-than-expected average selling prices. Total retail used vehicles sold were 44,656 units, up 2.5% year over year but below our expectation of 44,979 units. Average selling price per unit came in at $29,884, down 1.3% year over year. However, the metric exceeded our expectation of $27,515 million. The gross profit from the unit was $64.1 million, rising 6.1% year over year.
Used-vehicle wholesale sales rose 19.3% year over year to $102.3 million and beat our expectation of $91.7 million. The unit recorded a gross loss of $4.3 million, widening from $2.1 million incurred in the year-ago period. In the Parts and Service business, the top line rose 5.1% from the year-ago quarter to $545 million and gross profit increased 6.5% year over year to $299.3 million. Revenues from the Finance and Insurance (F&I) business came in at $187.1 million, up 8.4% from the year-ago period levels.
Segments in Detail
In the reported quarter, revenues from the U.S. business segment climbed 10.5% year over year to $3.77 billion and exceeded our forecast of $3.55 billion, largely on solid sales of new vehicles. The segment’s gross profit grew 2.3% to $640.2 million and came ahead of our prediction by $5 million. During the reported quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 38,152, 35,195 and 8,160, respectively.
In the reported period, revenues rose 8.1% year over year to $707.5 million for the U.K. business segment, falling short of our estimate of $713 million due to lower-than-expected sales of new vehicles. Gross profit was $90.5 million, down 3.4% from the year-ago quarter and missing our projection of $96.4 million. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 7,675, 9,461 and 2,996, respectively.
Financial Position
Selling, general and administrative expenses were up 7.4% year over year to $487.4 million. Group 1 had cash and cash equivalents of $57.2 million as of Dec 31, 2023, up from $47.9 million as of 2022-end. Total debt was $2.1 billion as of Dec 31, 2023, up from $2.08 million recorded on Dec 31, 2022.
During the quarter under discussion, GPI repurchased 160,968 shares at an average price of $262.25 per common share for a total of $42.2 million. The company currently has $143.3 million remaining on its authorized stock buyback program.
Zacks Rank & Key Picks
Group 1 has a Zacks Rank #3 (Hold) currently.
Some better-ranked players in the auto space are Honda (HMC - Free Report) , BYD Co Ltd. (BYDDY - Free Report) and Mercedes-Benz Group AG (MBGAF - Free Report) . While HMC and BYDDY sport a Zacks Rank #1 (Strong Buy) each, MBGAF carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HMC’s fiscal 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 7 cents and 5 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 27.3% and 35.3%, respectively. The EPS estimate for 2024 has improved 31 cents in the past 30 days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales suggests year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have improved a penny and 30 cents, respectively, in the past 60 days.