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 Automotive (GPI) Q2 Earnings Top Estimates, Rise Y/Y
Read MoreHide Full Article
Group 1 Automotive Inc. (GPI - Free Report) reported adjusted earnings per share of $2.45 in second-quarter 2018, beating the Zacks Consensus Estimate of $2.18. The bottom line improved substantially from the prior-year quarter’s $1.87. Results were aided by strong U.S Vehicle market in June, major cost reduction initiative and gains from capital deployment.
The company recorded net income of $56.5 million compared with $39.1 million in the year-ago quarter. Revenues of $2.9 billion increased 10.2% year over year.
Revenues from new-vehicle retail sales rose 7.4% to $1.55 billion.The same from retailed used vehicles grew 19.8% to $822 million. However, the metric from wholesale used-vehicle sales declined 6.6% to $93 million.
At the Parts and Service business, the top line improved 8% to $358.1 million. Also, the company’s Finance and Insurance business witnessed an 8% gain in revenues to $115 million.
Gross profit was up 8.2% year over year to $438 million. Operating income went up 18.4% to $109 million.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
On a same-store basis, revenues in the U.S. business segment rose 0.3% to $2.12 billion. New-vehicle retail sales declined 1.6% to $1.12 billion. Total used-vehicle sales rose 3.3% to $621 million. Parts and Service revenues increased 1% while Finance and Insurance revenues rose 1.5%.
Revenues, on a same-store basis, increased 13.6% year over year to $493 million at the U.K. business segment. Retail new-vehicle sales improved 10.5% to $254 million and total used-vehicle sales rose 16.8% to $184 million. Parts and Service revenues improved 16.2% and Finance and Insurance revenues rose 22.2%.
On a same-store basis, revenues in the Brazil business declined 5.8% year over year to $105 million in the reported quarter. New-vehicle retail sales decreased 8.7% to $67 million, while total used-vehicle sales rose 4.3% to $25 million. Parts and Service revenues declined 8% and Finance and Insurance revenues fell 6%.
Financial Details
Group 1 Automotive’s cash and cash equivalents increased to $41.5 million as of Jun 30, 2018, from $28.8 million as of Dec 31, 2017.
Share Repurchases
In second-quarter 2018, Group 1 Automotive repurchased 610,752 outstanding shares.
In July 2018, the company bought back an additional 367,773 shares for $25.0 million. As of Jul 25, 2018, Group 1 Automotive had $73.4 million remaining under the share repurchase authorization.
Zacks Rank & Key Picks
Group 1 Automotive carries a Zacks Rank #3 (Hold).
Oshkosh has an expected long-term growth rate of 18.3%. Over the past year, shares of the company have moved up 7.3%.
AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 2.3%.
Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 30.2% over the past year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Group 1 Automotive (GPI) Q2 Earnings Top Estimates, Rise Y/Y
Group 1 Automotive Inc. (GPI - Free Report) reported adjusted earnings per share of $2.45 in second-quarter 2018, beating the Zacks Consensus Estimate of $2.18. The bottom line improved substantially from the prior-year quarter’s $1.87. Results were aided by strong U.S Vehicle market in June, major cost reduction initiative and gains from capital deployment.
The company recorded net income of $56.5 million compared with $39.1 million in the year-ago quarter. Revenues of $2.9 billion increased 10.2% year over year.
Revenues from new-vehicle retail sales rose 7.4% to $1.55 billion.The same from retailed used vehicles grew 19.8% to $822 million. However, the metric from wholesale used-vehicle sales declined 6.6% to $93 million.
At the Parts and Service business, the top line improved 8% to $358.1 million. Also, the company’s Finance and Insurance business witnessed an 8% gain in revenues to $115 million.
Gross profit was up 8.2% year over year to $438 million. Operating income went up 18.4% to $109 million.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise | Group 1 Automotive, Inc. Quote
Segment in Details
On a same-store basis, revenues in the U.S. business segment rose 0.3% to $2.12 billion. New-vehicle retail sales declined 1.6% to $1.12 billion. Total used-vehicle sales rose 3.3% to $621 million. Parts and Service revenues increased 1% while Finance and Insurance revenues rose 1.5%.
Revenues, on a same-store basis, increased 13.6% year over year to $493 million at the U.K. business segment. Retail new-vehicle sales improved 10.5% to $254 million and total used-vehicle sales rose 16.8% to $184 million. Parts and Service revenues improved 16.2% and Finance and Insurance revenues rose 22.2%.
On a same-store basis, revenues in the Brazil business declined 5.8% year over year to $105 million in the reported quarter. New-vehicle retail sales decreased 8.7% to $67 million, while total used-vehicle sales rose 4.3% to $25 million. Parts and Service revenues declined 8% and Finance and Insurance revenues fell 6%.
Financial Details
Group 1 Automotive’s cash and cash equivalents increased to $41.5 million as of Jun 30, 2018, from $28.8 million as of Dec 31, 2017.
Share Repurchases
In second-quarter 2018, Group 1 Automotive repurchased 610,752 outstanding shares.
In July 2018, the company bought back an additional 367,773 shares for $25.0 million. As of Jul 25, 2018, Group 1 Automotive had $73.4 million remaining under the share repurchase authorization.
Zacks Rank & Key Picks
Group 1 Automotive carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , AB Volvo (VLVLY - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oshkosh has an expected long-term growth rate of 18.3%. Over the past year, shares of the company have moved up 7.3%.
AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 2.3%.
Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 30.2% over the past year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>