Group 1 Automotive(GPI)

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Group 1 Automotive(GPI) - 2025 Q1 - Earnings Call Presentation
2025-04-24 17:25
First Quarter 2025 Financial Results Investor Presentation April 24, 2025 Group 1 Automotive 2025 Forward looking statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements re ...
Group 1 Automotive (GPI) Q1 Earnings and Revenues Surpass Estimates
ZACKS· 2025-04-24 12:05
Group 1 Automotive (GPI) came out with quarterly earnings of $10.17 per share, beating the Zacks Consensus Estimate of $9.68 per share. This compares to earnings of $9.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.06%. A quarter ago, it was expected that this auto dealer would post earnings of $9.21 per share when it actually produced earnings of $10.02, delivering a surprise of 8.79%.Over the last four quarters, the co ...
Group 1 Automotive(GPI) - 2025 Q1 - Quarterly Results
2025-04-24 10:40
Exhibit 99.1 FOR IMMEDIATE RELEASE Group 1 Automotive Reports First Quarter 2025 Financial Results HOUSTON, TX, April 24, 2025 — Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), a Fortune 250 automotive retailer with 260 dealerships located in the U.S. and U.K., today reported financial results for the first quarter of 2025 ("current quarter"). "Our U.S. business performed well in the current quarter, as we continued to execute while navigating the uncertainty that has arisen from tariff a ...
Group 1 Automotive Reports First Quarter 2025 Financial Results
Prnewswire· 2025-04-24 09:01
Core Viewpoint - Group 1 Automotive reported strong financial results for Q1 2025, with total revenues increasing by 23.1% year-over-year, driven by robust performance in both the U.S. and U.K. markets [5][12]. Financial Performance - Total revenues for Q1 2025 reached $5.5 billion, a 23.1% increase from $4.5 billion in Q1 2024 [12]. - Net income from continuing operations was $127.7 million, down 13.3% from $147.4 million in the prior year [12]. - Adjusted net income from continuing operations increased by 3.6% to $134.7 million compared to $130.0 million in Q1 2024 [12]. - Diluted earnings per share from continuing operations were $9.64, a decrease of 10.4% from $10.76 in the prior year [12][24]. U.S. Operations - U.S. revenues for Q1 2025 totaled $3.9 billion, reflecting a 7.6% increase from $3.6 billion in Q1 2024 [29]. - New vehicle retail sales in the U.S. increased by 9.4% to $1.97 billion, while used vehicle retail sales rose by 4.1% to $1.14 billion [29]. - Gross profit from U.S. operations was $675.0 million, a 5.6% increase from $639.1 million in the previous year [29]. U.K. Operations - U.K. revenues reached $1.6 billion, marking a 92.0% increase year-over-year, with gross profit also hitting a record of $217.0 million [11][12]. - The integration of newly acquired dealerships has improved U.K. SG&A as a percentage of gross profit to pre-acquisition levels [3][6]. - The company recognized $11.1 million in restructuring charges in the U.K. during the current quarter [6]. Vehicle Sales and Margins - Total new vehicle units sold increased by 26.6% to 56,099 units, while used vehicle retail units sold rose by 21.2% to 59,618 units [5][12]. - Gross profit per retail unit for new vehicles decreased by 6.1% to $3,381, and for used vehicles, it decreased by 6.0% to $1,569 [5][12]. Share Repurchases - The company repurchased 286,731 shares at an average price of $428.33, totaling $122.8 million, representing 2.2% of outstanding shares [9][10]. Corporate Development - The company acquired one Lexus and three Toyota dealerships in the U.K., expected to generate approximately $100 million in annual revenues [7]. - The company disposed of one Subaru dealership in the U.S. and closed two Volkswagen dealerships in the U.K., which generated about $150 million in annual revenues [8].
Countdown to Group 1 Automotive (GPI) Q1 Earnings: Wall Street Forecasts for Key Metrics
ZACKS· 2025-04-21 14:21
Analysts on Wall Street project that Group 1 Automotive (GPI) will announce quarterly earnings of $9.54 per share in its forthcoming report, representing an increase of 0.5% year over year. Revenues are projected to reach $5.32 billion, increasing 19% from the same quarter last year.The current level reflects an upward revision of 0.8% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial project ...
Group 1 Automotive Schedules Release of First Quarter 2025 Financial Results
Prnewswire· 2025-04-08 20:17
HOUSTON, April 8, 2025 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), a Fortune 250 automotive retailer with 260 dealerships located in the U.S. and U.K., today announced that it will release financial results for the first quarter ended March 31, 2025 on Thursday, April 24, 2025 before the market opens. Daryl Kenningham, Group 1's President and Chief Executive Officer, and the Company's senior management team will host a conference call to discuss the results later that ...
Should Value Investors Buy Group 1 Automotive (GPI) Stock?
ZACKS· 2025-03-19 14:40
Core Insights - The article emphasizes the importance of value investing and highlights Group 1 Automotive (GPI) as a strong value stock opportunity based on its financial metrics [2][3][7] Valuation Metrics - GPI has a Price-to-Book (P/B) ratio of 1.76, which is favorable compared to the industry average of 2.00. The P/B ratio has fluctuated between 1.28 and 2.17 over the past 52 weeks, with a median of 1.65 [4] - The Price-to-Sales (P/S) ratio for GPI is 0.26, slightly below the industry average of 0.27, indicating a solid valuation based on revenue [5] - GPI's Price-to-Cash Flow (P/CF) ratio stands at 8.35, which is attractive compared to the industry average of 9.69. The P/CF ratio has ranged from 5.13 to 10.31 in the past year, with a median of 7.44 [6] Investment Outlook - The combination of GPI's strong valuation metrics and positive earnings outlook suggests that the stock is currently undervalued, making it an appealing option for value investors [7]
Here's Why Group 1 Automotive (GPI) is a Strong Value Stock
ZACKS· 2025-03-14 14:45
Company Overview - Group 1 Automotive, Inc. is a leading automotive retailer with operations primarily in the United States and the U.K., operating 150 dealerships in the U.S. and 55 in the U.K. [11] - The company sells new and used cars and light trucks, and also offers vehicle financing, insurance, service contracts, maintenance, repair services, and aftermarket automotive products [11]. Investment Metrics - Group 1 Automotive has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a solid position in the market [12]. - The company has a Value Style Score of B, supported by attractive valuation metrics, including a forward P/E ratio of 9.36, which is appealing to value investors [12]. - Over the last 60 days, five analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.80 to $41.18 per share [12]. - Group 1 Automotive has an average earnings surprise of 3%, suggesting a positive trend in earnings performance [12]. Investment Recommendation - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Group 1 Automotive is recommended for investors' consideration [13].
All You Need to Know About Group 1 Automotive (GPI) Rating Upgrade to Buy
ZACKS· 2025-03-12 17:01
Core Viewpoint - Group 1 Automotive (GPI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Group 1 Automotive suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Earnings Estimate Revisions - Group 1 Automotive is projected to earn $41.18 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 5% [8]. - Over the past three months, the Zacks Consensus Estimate for Group 1 Automotive has risen by 2.6% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Group 1 Automotive in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].
Group 1 Automotive(GPI) - 2024 Q4 - Annual Report
2025-02-14 20:43
Regulatory Environment - The U.K. plans to ban sales of new gasoline and diesel-powered vehicles after 2035, which could impact vehicle offerings and increase operational costs [67]. - The U.S. EPA finalized new emissions standards for light and medium-duty vehicles for model years 2027 through 2032, aimed at reducing GHG emissions [69]. - The company is subject to risks associated with environmental regulations, including potential increases in operational costs due to stricter GHG emissions limits [68]. - The company may incur significant costs related to compliance with new climate-related disclosure laws, starting in 2026, which could impact access to capital [124]. - The company is assessing the impact of California's Climate Corporate Data Accountability Act, which requires annual disclosure of GHG emissions for companies with revenues over $1 billion [124]. - The company is subject to operational risks associated with environmental laws, which may impose significant costs and liabilities [130]. Market Conditions - The U.K. market fell short of mandated targets for new zero emissions vehicles in 2024, with higher targets set for 2025, potentially challenging new vehicle sales [90]. - Inflation and increased energy costs could adversely impact operations and customer demand for vehicles and services [86]. - A significant portion of vehicle purchases are financed, and tightening credit markets may decrease the availability of automotive loans, adversely affecting sales [87]. - Tariffs and market developments could increase production costs for OEMs, potentially leading to higher vehicle prices and reduced demand [97]. - Changes in fuel prices and consumer preferences could adversely affect vehicle sales volumes and service revenues [121]. Competition and Sales - The company faces significant competition in automotive sales, which could adversely impact sales volumes and margins [100]. - The company is dependent on relationships with manufacturers, which may limit its ability to acquire new dealerships or maintain existing agreements [98]. - The transition to an agency model by Mercedes Benz in the U.K. resulted in reduced revenues, with the company receiving only a commission for each sale [106]. - Increased competition for dealership acquisitions may result in fewer opportunities and higher acquisition prices [103]. - Vehicle technology advancements and changes in consumer preferences may adversely affect new and used vehicle sales volumes [107]. Financial Performance - The company recognized impairment charges for intangible franchise rights amounting to $28.2 million, $25.1 million, and $1.3 million for the years ended December 31, 2024, 2023, and 2022 respectively [134]. - The company’s debt securities are rated just below investment-grade, and any downgrade could negatively impact access to debt markets and increase borrowing costs [91]. - The company faces potential increases in insurance costs and changes in coverage availability, which could materially impact financial conditions [116]. - The company has not recorded any goodwill impairments in the past three years, but market conditions could lead to future impairment charges [134]. Operational Risks - The company relies on vehicle manufacturers for new vehicle inventory, and any disruptions in their production could materially affect business operations [93]. - The company relies on third-party vendors for key operational processes, and disruptions in their services could adversely impact business [108]. - Cybersecurity incidents, such as the one experienced by CDK Global, could negatively affect the company's operations and financial condition [111]. - The company is self-insured for a portion of its potential liabilities, which may expose it to significant financial risks [116]. - The company may face challenges in integrating acquired dealerships, which could impact revenue growth and operational efficiency [105]. Workforce and Internal Controls - As of December 31, 2024, the company had 20,413 employees, with 13,398 in the U.S. and 7,015 in the U.K. [74]. - Management has designed and implemented internal controls and procedures, which are periodically reviewed and updated [137]. - There has not been a material failure of internal controls reported [137]. - Any failure or circumvention of controls could have a material adverse effect on business operations and financial condition [137]. Expansion and Growth - The company doubled its footprint in the U.K. during the current year through the acquisition of Inchcape Retail [104].