Yahoo Finance Group 1 (GPI) Q1 Earnings Miss Expectations, Decline Y/Y
Group 1 Automotive GPI reported first-quarter 2024 adjusted earnings per share (EPS) of $9.49, missing the Zacks Consensus Estimate of $9.52 and falling 13.2% year over year. The automotive retailer registered net sales of $4.5 billion, beating the Zacks Consensus Estimate of $4.3 billion. Also, the top line rose from the year-ago quarter’s $4.13 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 11.6% from the prior-year quarter to $2.18 billion and exceeded our projection of $1.98 billion on the back of higher-than-expected volumes. Total retail new vehicles sold were 44,302 units, increasing 11.7% year over year and surpassing our forecast of 39,427 units. Average selling price per unit was $49,709, up 0.1% year over year. The gross profit from the new vehicle retail unit totaled $159.5 million, decreasing 14.6% year over year.
Used-vehicle retail sales rose 5% from the year-ago period to $1.42 billion and outpaced our forecast of $1.24 billion on higher-than-expected volume. Total retail used vehicles sold were 49,183 units, up 8.2% year over year, exceeding our expectation of 41,391 units. Average selling price per unit came in at $28,806, down 3% year over year. The gross profit from the unit was $82.1 million, rising 6.9% year over year.
Used-vehicle wholesale sales fell 5.3% year over year to $106 million and missed our expectation of $128.9 million. The unit recorded a gross loss of $0.9 million against the gross profit of $2 million in the year-ago period. In the Parts and Service business, the top line rose 5.1% from the year-ago quarter to $576.2 million and gross profit increased 5.3% year over year to $313 million. Revenues from the Finance and Insurance business came in at $188.9 million, up 14.4% from the year-ago period’s level.
Segments in Detail
In the reported quarter, revenues from the U.S. business segment climbed 9.1% year over year to $3.65 billion and exceeded our forecast of $3.3 billion, largely on solid sales of new vehicles. The segment’s gross profit grew 3.5% to $639.1 million and came ahead of our prediction of $616 million. During the reported quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 35,341, 37,885 and 9,088, respectively.
In the reported period, revenues rose 4.7% year over year to $824.8 million for the U.K. business segment, exceeding our estimate of $786.4 million due to robust sales of new vehicles. Gross profit was $103.5 million, down 6.2% from the year-ago quarter and missing our projection of $113.5 million. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 8,961, 11,298 and 2,740, respectively.
Financial Position
Selling, general and administrative expenses were up 2.9% year over year to $476.1 million. Group 1 had cash and cash equivalents of $41.9 million as of Mar 31, 2024, down from $57.2 million as of 2023-end. Total debt was $2.6 billion as of Mar 31, 2024, up from $2.1 million as of Dec 31, 2023.
During the quarter under discussion, GPI repurchased 203,350 shares at an average price of $264.41 per common share for a total of $53.8 million. The company currently has $89.6 million remaining on its authorized stock buyback program.
Zacks Rank & Key Picks
GPI currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Geely Automobile Holdings Limited GELYY, Volvo VLVLY and Canoo Inc. GOEV, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The EPS estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for VLVLY’s 2024 earnings suggests year-over-year growth of 0.43%. The EPS estimates for 2025 have improved 11 cents in the past 30 days.
The Zacks Consensus Estimate for GOEV’s 2024 sales and earnings suggests year-over-year growth of 7,722.3% and 68.24%, respectively. The EPS estimates for 2024 and 2025 have improved $4.27 and $4.71, respectively, in the past 30 days.
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Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report
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Canoo Inc. (GOEV) : Free Stock Analysis Report
