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Group 1 Automotive (GPI) Q3 Earnings Top Estimates, Rise Y/Y
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Group 1 Automotive, Inc. (GPI - Free Report) reported adjusted earnings per share (EPS) of $2.47 in third-quarter 2018, beating the Zacks Consensus Estimate of $2.39. The bottom line improved from the prior-year quarter’s tally of $2.23. Results in the quarter were aided by good cost control and strong used vehicle results.
The company recorded net income of $34.8 million compared with $29.9 million in the year-ago quarter. Revenues of $2.9 billion declined 4.1% year over year.
Revenues from new-vehicle retail sales fell 10% to $1.54 billion. The same from retailed used vehicles grew 6.6% to $792.4 million. However, the metric from wholesale used-vehicle sales declined 17.4% to $86.6 million.
In the Parts and Service business, the top line improved 3.3% to $354.5 million. Also, the company’s Finance and Insurance business witnessed a 4.6% rise in revenues to $116.1 million.
Gross profit inched up 0.9% year over year to $435.1 million. Operating income went down 0.4% to $78.2 million.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
On a same-store basis, revenues in the U.S. business segment fell 5.2% year over year to $2.15 billion. New-vehicle retail sales declined 8.6% on a year-over-year basis to $1.17 billion. Total used-vehicle sales fell 3% to $596.4 million. Parts and Service revenues increased 2.2% year over year. Finance and Insurance revenues rose 4.1% on a year-over-year basis.
Revenues, on a same-store basis, fell 11% year over year to $496.4 million in the U.K. business segment. Retail new-vehicle sales declined 26.2% to $236.1 million and total used-vehicle sales rose 11.4% to $203.3 million. Parts and Service revenues improved 5.3% as well as Finance and Insurance revenues fell 7.7%.
On a same-store basis, revenues in the Brazil business declined 19.4% year over year to $96.4 million in the reported quarter. New-vehicle retail sales fell 24.3% to $60 million, while total used-vehicle sales fell 8.2% to $23.6 million. Parts and Service revenues declined 13.5% and Finance and Insurance revenues fell 6.2%.
Financial Details
Group 1 Automotive’s cash and cash equivalents increased to $32 million as of Sep 30, 2018, from $28.8 million as of Dec 31, 2017.
Share Repurchases
In third-quarter 2018, Group 1 Automotive repurchased 789,509 outstanding shares for a total of $55.1 million.
The company repurchased 1,935,738 shares for a total of $131.4 million, year to date through Oct 25, 2018. These repurchases represented roughly 9.5% of its share float at the start of 2018 and reduced the total outstanding share count to around 18.6 million common shares as of Oct 25, 2018.
On Oct 25, 2018, the board of directors hiked common stock share repurchase authorization to $100 million.
Zacks Rank & Key Picks
Group 1 Automotive currently carries a Zacks Rank #3 (Hold).
Allison Transmission has an expected long-term growth rate of 10%. In the past six months, shares of the company have surged 12.8%.
Advance Auto Parts has an expected long-term growth rate of 12.3%. In the past six months, shares of the company have risen 40.3%.
AutoZone has an expected long-term growth rate of 12.2%. In the past two years, shares of the company have risen 17.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Group 1 Automotive (GPI) Q3 Earnings Top Estimates, Rise Y/Y
Group 1 Automotive, Inc. (GPI - Free Report) reported adjusted earnings per share (EPS) of $2.47 in third-quarter 2018, beating the Zacks Consensus Estimate of $2.39. The bottom line improved from the prior-year quarter’s tally of $2.23. Results in the quarter were aided by good cost control and strong used vehicle results.
The company recorded net income of $34.8 million compared with $29.9 million in the year-ago quarter. Revenues of $2.9 billion declined 4.1% year over year.
Revenues from new-vehicle retail sales fell 10% to $1.54 billion. The same from retailed used vehicles grew 6.6% to $792.4 million. However, the metric from wholesale used-vehicle sales declined 17.4% to $86.6 million.
In the Parts and Service business, the top line improved 3.3% to $354.5 million. Also, the company’s Finance and Insurance business witnessed a 4.6% rise in revenues to $116.1 million.
Gross profit inched up 0.9% year over year to $435.1 million. Operating income went down 0.4% to $78.2 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 fell 5.2% year over year to $2.15 billion. New-vehicle retail sales declined 8.6% on a year-over-year basis to $1.17 billion. Total used-vehicle sales fell 3% to $596.4 million. Parts and Service revenues increased 2.2% year over year. Finance and Insurance revenues rose 4.1% on a year-over-year basis.
Revenues, on a same-store basis, fell 11% year over year to $496.4 million in the U.K. business segment. Retail new-vehicle sales declined 26.2% to $236.1 million and total used-vehicle sales rose 11.4% to $203.3 million. Parts and Service revenues improved 5.3% as well as Finance and Insurance revenues fell 7.7%.
On a same-store basis, revenues in the Brazil business declined 19.4% year over year to $96.4 million in the reported quarter. New-vehicle retail sales fell 24.3% to $60 million, while total used-vehicle sales fell 8.2% to $23.6 million. Parts and Service revenues declined 13.5% and Finance and Insurance revenues fell 6.2%.
Financial Details
Group 1 Automotive’s cash and cash equivalents increased to $32 million as of Sep 30, 2018, from $28.8 million as of Dec 31, 2017.
Share Repurchases
In third-quarter 2018, Group 1 Automotive repurchased 789,509 outstanding shares for a total of $55.1 million.
The company repurchased 1,935,738 shares for a total of $131.4 million, year to date through Oct 25, 2018. These repurchases represented roughly 9.5% of its share float at the start of 2018 and reduced the total outstanding share count to around 18.6 million common shares as of Oct 25, 2018.
On Oct 25, 2018, the board of directors hiked common stock share repurchase authorization to $100 million.
Zacks Rank & Key Picks
Group 1 Automotive currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Advance Auto Parts, Inc. (AAP - Free Report) and AutoZone, Inc. (AZO - 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.
Allison Transmission has an expected long-term growth rate of 10%. In the past six months, shares of the company have surged 12.8%.
Advance Auto Parts has an expected long-term growth rate of 12.3%. In the past six months, shares of the company have risen 40.3%.
AutoZone has an expected long-term growth rate of 12.2%. In the past two years, shares of the company have risen 17.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>