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Group 1's (GPI) Q3 Earnings and Sales Beat, Increase Y/Y
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Group 1 Automotive (GPI - Free Report) reported third-quarter 2022 adjusted earnings per share of $12, beating the Zacks Consensus Estimate of $10.99. The outperformance can be attributed to the higher-than-anticipated profit from the company’s new-vehicle retail, and Parts and Service segments. The bottom line increased 27.1% from the prior-year quarter’s $9.44 per share.
The automotive retailer registered net sales of $4,163.4 million, beating the Zacks Consensus Estimate of $4,069 million. Also, the top line rose 22% from the year-ago quarter’s $3,412.8 million.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
New-vehicle retail sales increased 24.4% from the prior-year quarter to $1,883.3 million. The figure, however, lagged the Zacks Consensus Estimate of $1,895 million. The gross profit from the unit totaled $206.7 million, increasing 28% year over year. The reported profit figure surpassed the consensus mark of $197 million.
Used-vehicle retail sales rose 21% from the year-ago period to $1,488.6 million and outpaced the consensus mark of $1,393 million. The gross profit from the unit summed $76 million, shrinking 21.6% year over year. The reported profit figure matched the consensus mark.
Used-vehicle wholesale sales fell 15.5% year over year to $89.6 million and missed the consensus mark of $93 million. The unit recorded a loss of $1.5 million against a profit of $7.4 million reported in the year-ago period. The reported figure significantly lagged the consensus mark of a profit of $1.11 million.
In the Parts and Service business, the top line rose 23.8% from the year-ago quarter’s to $515.6 million. The revenue figure topped the Zacks Consensus Estimate of $505 million. The gross profit for the segment summed $285.1 million, climbing 25.7% year over year and outpacing the consensus mark of $275 million.
Revenues from the Finance and Insurance business improved 27.6% from the prior-year period’s levels to $186.3 million, marginally beating the consensus mark of $186 million. The profit for the segment was break-even in the quarter.
Segments in Detail
In the reported quarter, revenues in the U.S. business segment climbed 30.9% year over year to $3,484.3 million. The segment’s gross profit grew 23.2% to $659.3 million. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 31,745 , 38,172 and 6,453, respectively.
In the reported period, revenues shrunk 9.5% year over year to $679.1 million for the U.K. business segment. Also, the gross profit summed $93.3 million, down 10% from the year-ago quarter. During the reported quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 7,492, 10,255 and 3,003, respectively.
Financial Position
Selling, general and administrative expenses flared up 20% year over year to $450.9 million. Group 1 Automotive had cash and cash equivalents of $20.5 million as of Sep 30, 2022, up from $14.9 million in 2021-end. Total debt was $1,942.4 million as of Sep 30, 2022, down from $2,035.7 million recorded on Dec 31, 2021.
During the current quarter, GPI repurchased 609,929 shares at an average price of $172.84 per common share for a total of $105.4 million. As of Sep 30, 2022, the company had 15.2 million common shares outstanding.
During the quarter, the company adopted a Rule 10b5-1 trading plan, effective from Oct 3-Oct 19, 2022, under which it repurchased an additional 638,072 shares subsequent to Sep 30, 2022, at an average price of $156.70, for a total amount of $100 million.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.7% downward over the past 30 days.
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Group 1's (GPI) Q3 Earnings and Sales Beat, Increase Y/Y
Group 1 Automotive (GPI - Free Report) reported third-quarter 2022 adjusted earnings per share of $12, beating the Zacks Consensus Estimate of $10.99. The outperformance can be attributed to the higher-than-anticipated profit from the company’s new-vehicle retail, and Parts and Service segments. The bottom line increased 27.1% from the prior-year quarter’s $9.44 per share.
The automotive retailer registered net sales of $4,163.4 million, beating the Zacks Consensus Estimate of $4,069 million. Also, the top line rose 22% from the year-ago quarter’s $3,412.8 million.
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 24.4% from the prior-year quarter to $1,883.3 million. The figure, however, lagged the Zacks Consensus Estimate of $1,895 million. The gross profit from the unit totaled $206.7 million, increasing 28% year over year. The reported profit figure surpassed the consensus mark of $197 million.
Used-vehicle retail sales rose 21% from the year-ago period to $1,488.6 million and outpaced the consensus mark of $1,393 million. The gross profit from the unit summed $76 million, shrinking 21.6% year over year. The reported profit figure matched the consensus mark.
Used-vehicle wholesale sales fell 15.5% year over year to $89.6 million and missed the consensus mark of $93 million. The unit recorded a loss of $1.5 million against a profit of $7.4 million reported in the year-ago period. The reported figure significantly lagged the consensus mark of a profit of $1.11 million.
In the Parts and Service business, the top line rose 23.8% from the year-ago quarter’s to $515.6 million. The revenue figure topped the Zacks Consensus Estimate of $505 million. The gross profit for the segment summed $285.1 million, climbing 25.7% year over year and outpacing the consensus mark of $275 million.
Revenues from the Finance and Insurance business improved 27.6% from the prior-year period’s levels to $186.3 million, marginally beating the consensus mark of $186 million. The profit for the segment was break-even in the quarter.
Segments in Detail
In the reported quarter, revenues in the U.S. business segment climbed 30.9% year over year to $3,484.3 million. The segment’s gross profit grew 23.2% to $659.3 million. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 31,745 , 38,172 and 6,453, respectively.
In the reported period, revenues shrunk 9.5% year over year to $679.1 million for the U.K. business segment. Also, the gross profit summed $93.3 million, down 10% from the year-ago quarter. During the reported quarter, the retail new-vehicle, retail used-vehicle, and wholesale used-vehicle units sold were 7,492, 10,255 and 3,003, respectively.
Financial Position
Selling, general and administrative expenses flared up 20% year over year to $450.9 million. Group 1 Automotive had cash and cash equivalents of $20.5 million as of Sep 30, 2022, up from $14.9 million in 2021-end. Total debt was $1,942.4 million as of Sep 30, 2022, down from $2,035.7 million recorded on Dec 31, 2021.
During the current quarter, GPI repurchased 609,929 shares at an average price of $172.84 per common share for a total of $105.4 million. As of Sep 30, 2022, the company had 15.2 million common shares outstanding.
During the quarter, the company adopted a Rule 10b5-1 trading plan, effective from Oct 3-Oct 19, 2022, under which it repurchased an additional 638,072 shares subsequent to Sep 30, 2022, at an average price of $156.70, for a total amount of $100 million.
Zacks Rank & Key Picks
GPI currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Genuine Parts Company (GPC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.7% downward over the past 30 days.