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Group 1 Automotive (GPI) Increases Buyback Authorization
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Group 1 Automotive Inc. (GPI - Free Report) has increased its existing authorized share buyback program by over $50 million. As of Apr 28, 2017, the company had $22.4 million remaining under the share repurchase authorization. The company now has $75 million remaining.
The company can purchase these shares in the open market or in privately negotiated transactions. The buyback is expected to be funded by cash from operations and the repurchased shares will be held in the company’s treasury.
A cash dividend of 24 cents per share for the first quarter of 2017 has also been declared. The dividend is payable on Jun 15, 2017, to stockholders of record on Jun 1.
However, Group 1 Automotive recorded weak results in the first quarter of 2017. Adjusted earnings per share declined 3.8% year over year to $1.53 in the quarter. The figure also missed the Zacks Consensus Estimate of $1.71. Adjusted net income decreased 11.5% to $32.8 million from $37.1 million in the year-ago quarter. Revenues decreased 3.4% year over year to $2.52 billion and also missed the Zacks Consensus Estimate of $2.58 billion.
Group 1 Automotive has been seeing a decline in new vehicle unit sales. Revenues from new vehicle retail sales fell 5.2% to $1.34 billion in the last reported quarter due to a 6.1% decrease in sales to 38,290 units. Revenues from retailed used vehicles dropped 4% to $660.9 million on a 3.7% decline in sales to 31,566 units.
Price Performance
Group 1 Automotive underperformed the Zacks categorized Automotive - Retail and Whole Sales industry in the last three months. The company’s shares lost 21.8% over this period compared with a 13.2% decline recorded by the industry.
Zacks Rank & Key Picks
Currently, Group 1 Automotive carries a Zacks Rank #4 (Sell).
Allison Transmission Holdings has an expected long-term growth rate of 11%.
Ferrari has expected long-term earnings per share growth rate of 14.1%.
Cummins has an expected earnings growth rate of 9.8% over the long term.
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Group 1 Automotive (GPI) Increases Buyback Authorization
Group 1 Automotive Inc. (GPI - Free Report) has increased its existing authorized share buyback program by over $50 million. As of Apr 28, 2017, the company had $22.4 million remaining under the share repurchase authorization. The company now has $75 million remaining.
The company can purchase these shares in the open market or in privately negotiated transactions. The buyback is expected to be funded by cash from operations and the repurchased shares will be held in the company’s treasury.
A cash dividend of 24 cents per share for the first quarter of 2017 has also been declared. The dividend is payable on Jun 15, 2017, to stockholders of record on Jun 1.
However, Group 1 Automotive recorded weak results in the first quarter of 2017. Adjusted earnings per share declined 3.8% year over year to $1.53 in the quarter. The figure also missed the Zacks Consensus Estimate of $1.71. Adjusted net income decreased 11.5% to $32.8 million from $37.1 million in the year-ago quarter. Revenues decreased 3.4% year over year to $2.52 billion and also missed the Zacks Consensus Estimate of $2.58 billion.
Group 1 Automotive has been seeing a decline in new vehicle unit sales. Revenues from new vehicle retail sales fell 5.2% to $1.34 billion in the last reported quarter due to a 6.1% decrease in sales to 38,290 units. Revenues from retailed used vehicles dropped 4% to $660.9 million on a 3.7% decline in sales to 31,566 units.
Price Performance
Group 1 Automotive underperformed the Zacks categorized Automotive - Retail and Whole Sales industry in the last three months. The company’s shares lost 21.8% over this period compared with a 13.2% decline recorded by the industry.
Zacks Rank & Key Picks
Currently, Group 1 Automotive carries a Zacks Rank #4 (Sell).
Some better-ranked automobile stocks include Allison Transmission Holdings, Inc. (ALSN - Free Report) , Ferrari N.V. (RACE - Free Report) and Cummins Inc. (CMI - Free Report) . All three stocks carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission Holdings has an expected long-term growth rate of 11%.
Ferrari has expected long-term earnings per share growth rate of 14.1%.
Cummins has an expected earnings growth rate of 9.8% over the long term.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>