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Group 1 Automotive (GPI) Q3 Earnings, Revenues Top Estimates
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Group 1 Automotive Inc. (GPI - Free Report) reported adjusted earnings per share of $2.23 in third-quarter 2017, beating the Zacks Consensus Estimate of $1.84. The bottom line substantially improved from the prior-year quarter, when the company’s adjusted earnings per share came in at $1.96.
The company recorded an adjusted net income of $46.6 million against the prior-year figure of $42 million. Strong demand to replace the damaged vehicles in September offered a significant boost to the company’s financials.
Revenues decreased 6.6% year over year to $3.01 billion and surpassed the Zacks Consensus Estimate of $2.82 billion.
Revenues from new vehicle retail sales increased 7.7% to $1.71 billion owing to a 6% rise in unit sales. Revenues from retailed used vehicles grew 5.8% to $743 million on a 4.1% increase in unit sales. Revenues from used vehicle wholesale sales inched up 0.6% to $104.8 million.
From the Parts and Service business, revenues improved 7.4% to $343.2 million. The company’s Finance and Insurance business witnessed a 2.1% gain in revenues to $111 million.
Gross profit climbed 6.1% year over year to $431.4 million. Operating income declined 6.4% to $78.5 million.
Segment Details
On a Same Store basis, revenues in the U.S. business nudged up 1.5% to $2.3 billion. The segment recorded 3.6% growth in new vehicle retail sales to $1.3 billion and a 3.4% fall in total used vehicles’ retail sales to $620.2 million. Parts and Service revenue increased 4.7%, while Finance and Insurance revenues slipped 1.5%.
Revenues on a Same Store basis in the U.K. business gained 8.8% year over year to $468.9 million. Retail new vehicle sales improved 6.5% to $270.8 million and total used vehicle sales rallied 14.1% to $151.3 million. Parts and Service revenue increased 5.7%, while Finance and Insurance revenues rose 9.9%.
On a Same Store basis, revenues in the Brazil business rose 14% year over year to $119 million in the reported quarter. New vehicle retail sales gained 9.2% to $78.7 million, while total used vehicle sales surged 31.4% to $25.7 million. Parts and Service revenues increased 11.7%, while Finance and Insurance revenues soared 35.2%.
Financial Details
Group 1 Automotive’s cash and cash equivalents increased to $66.9 million as of Sep 30, 2017 from $21 million as of Dec 31, 2016.
Share Repurchases
During third-quarter 2017, Group 1 Automotive repurchased approximately 20,000 outstanding shares. As of Sep 30, 2017, the company had $49.6 million remaining under the share repurchase authorization.
Acquisitions
In August, Group 1 Automotive acquired Audi Forth Worth in Texas, expecting annualized revenue of $55 million.
In July, the company bought Beadles Group Ltd in the United Kingdom, which expands its dealership footprint in the region to 43 stores. This is estimated to fetch in annual revenues of $330 million.
Also in the same month, the company acquired its first Jaguar and Land Rover dealerships in the United States, located at Albuquerque and Santa Fe, New Mexico.
Zacks Rank & Key Picks
Group 1 Automotive currently carries a Zacks Rank #3 (Hold).
Daimler has an expected long-term growth rate of 2.8%.
BorgWarner has an expected long-term growth rate of 8.9%.
Lear has an expected long-term growth rate of 7.1%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Group 1 Automotive (GPI) Q3 Earnings, Revenues Top Estimates
Group 1 Automotive Inc. (GPI - Free Report) reported adjusted earnings per share of $2.23 in third-quarter 2017, beating the Zacks Consensus Estimate of $1.84. The bottom line substantially improved from the prior-year quarter, when the company’s adjusted earnings per share came in at $1.96.
The company recorded an adjusted net income of $46.6 million against the prior-year figure of $42 million. Strong demand to replace the damaged vehicles in September offered a significant boost to the company’s financials.
Revenues decreased 6.6% year over year to $3.01 billion and surpassed the Zacks Consensus Estimate of $2.82 billion.
Revenues from new vehicle retail sales increased 7.7% to $1.71 billion owing to a 6% rise in unit sales. Revenues from retailed used vehicles grew 5.8% to $743 million on a 4.1% increase in unit sales. Revenues from used vehicle wholesale sales inched up 0.6% to $104.8 million.
From the Parts and Service business, revenues improved 7.4% to $343.2 million. The company’s Finance and Insurance business witnessed a 2.1% gain in revenues to $111 million.
Gross profit climbed 6.1% year over year to $431.4 million. Operating income declined 6.4% to $78.5 million.
Segment Details
On a Same Store basis, revenues in the U.S. business nudged up 1.5% to $2.3 billion. The segment recorded 3.6% growth in new vehicle retail sales to $1.3 billion and a 3.4% fall in total used vehicles’ retail sales to $620.2 million. Parts and Service revenue increased 4.7%, while Finance and Insurance revenues slipped 1.5%.
Revenues on a Same Store basis in the U.K. business gained 8.8% year over year to $468.9 million. Retail new vehicle sales improved 6.5% to $270.8 million and total used vehicle sales rallied 14.1% to $151.3 million. Parts and Service revenue increased 5.7%, while Finance and Insurance revenues rose 9.9%.
On a Same Store basis, revenues in the Brazil business rose 14% year over year to $119 million in the reported quarter. New vehicle retail sales gained 9.2% to $78.7 million, while total used vehicle sales surged 31.4% to $25.7 million. Parts and Service revenues increased 11.7%, while Finance and Insurance revenues soared 35.2%.
Financial Details
Group 1 Automotive’s cash and cash equivalents increased to $66.9 million as of Sep 30, 2017 from $21 million as of Dec 31, 2016.
Share Repurchases
During third-quarter 2017, Group 1 Automotive repurchased approximately 20,000 outstanding shares. As of Sep 30, 2017, the company had $49.6 million remaining under the share repurchase authorization.
Acquisitions
In August, Group 1 Automotive acquired Audi Forth Worth in Texas, expecting annualized revenue of $55 million.
In July, the company bought Beadles Group Ltd in the United Kingdom, which expands its dealership footprint in the region to 43 stores. This is estimated to fetch in annual revenues of $330 million.
Also in the same month, the company acquired its first Jaguar and Land Rover dealerships in the United States, located at Albuquerque and Santa Fe, New Mexico.
Zacks Rank & Key Picks
Group 1 Automotive currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include Daimler AG , BorgWarner Inc. (BWA - Free Report) and Lear Corporation (LEA - Free Report) . All stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Daimler has an expected long-term growth rate of 2.8%.
BorgWarner has an expected long-term growth rate of 8.9%.
Lear has an expected long-term growth rate of 7.1%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>