It has been about a month since the last earnings report for Group 1 Automotive (GPI) . Shares have added about 5.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Group 1 Automotive due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Group 1 Q2 Earnings Beat Expect ...

HOUSTON, Aug. 8, 2024 /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 its board of directors declared a quarterly dividend of $0.47 per share. The dividend is consistent with the Company's previously announced increase of 4% in its annualized dividend rate from $1.80 per share in 2023 to $1.88 per share in 2024. The dividend is payable on September 16, 2024 to stockholders ...

HOUSTON, Aug. 1, 2024 /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 the Company has closed on the acquisition of Inchcape Retail ("IR") automotive operations with 54 dealership locations across the U.K. These dealerships are expected to generate $2.7 billion in annual revenues bringing 2024 year-to-date total acquired revenues for Group 1 to $3.8 billion. "This trans ...

Quarter Highlights Used-vehicle retail sales rose 0.2% from the year-ago period to $1.45 billion but missed our forecast of $1.47 billion. Total retail used vehicles sold were 49,260 units, up 5.3% year over year, exceeding our expectation of 47,621 units. The average selling price per unit came in at $29,501, down 4.9% year over year. The gross profit from the unit was $80.7 million, rising 2.4% year over year. Segments in Detail In the second quarter, revenues rose 2.1% year over year to $775.2 million fo ...

Offering Memorandum Excerpts We currently expect to fund the Inchcape Acquisition with a combination of borrowings under the Acquisition Line of our Revolving Credit Facility and cash on hand. • represented 7% of our operating income; and • represented 19% of our total assets; and *** EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted free cash flow, adjusted net cash flows provided by operating activities, adjusted net cash flows used in investing activities, adjusted n ...

Financial Performance - Total revenues for Q2 2024 reached $4,696.4 million, a 3.0% increase from $4,558.5 million in Q2 2023[128]. - Net income for Q2 2024 was $138.2 million, down 18.9% from $170.5 million in Q2 2023[131]. - Basic earnings per share from continuing operations decreased to $10.20, compared to $12.06 in the same quarter last year[128]. - Gross profit for the six months ended June 30, 2024, was $1,509.1 million, slightly up from $1,503.4 million in 2023[128]. - Total revenues for the six months ended June 30, 2024, were $4,696.4 million, down from $9,166.9 million in the same period of 2023, reflecting a decline of 48.7%[167]. - Net income for the six months ended June 30, 2024, was $286.1 million, a decrease of 13.0% from $329.0 million in the same period of 2023[157]. - Total gross profit decreased by 3.2% to $1,398.7 million from $1,444.4 million[226]. - Total revenues grew by 3.0% year-over-year, with a constant currency change of 2.9%[236]. Assets and Liabilities - Total assets increased to $8,850.3 million as of June 30, 2024, up from $7,774.1 million at December 31, 2023, representing a growth of 13.8%[127]. - Total liabilities reached $5,984.0 million, up from $4,799.5 million, indicating a growth of 24.8%[127]. - Long-term debt increased to $2,279.3 million from $1,989.4 million, which is a rise of 14.6%[127]. - Current liabilities increased to $3,097.7 million from $2,505.7 million, reflecting a rise of 23.6%[127]. - As of June 30, 2024, total debt increased to $2,460.6 million from $2,107.5 million as of December 31, 2023, representing a 16.7% increase[182]. Cash Flow and Investments - Net cash provided by operating activities decreased to $129.8 million for the six months ended June 30, 2024, compared to $239.0 million in 2023, a decline of 45.9%[157]. - The company reported a net cash used in investing activities of $669.0 million for the six months ended June 30, 2024, compared to $369.1 million in 2023, an increase of 81.2%[157]. - The company reported a net cash provided by financing activities of $546.4 million for the six months ended June 30, 2024, compared to $103.0 million in 2023, an increase of 429.3%[157]. Stock and Shareholder Information - During the Current Year, 352,920 shares were repurchased at an average price of $282.81 per share, totaling $99.8 million[95]. - As of June 30, 2024, $204.6 million remained available under the current stock repurchase authorization[95]. - The company declared dividends of $0.47 per share, totaling $6.4 million[143]. - The balance of common stock shares decreased from 25,131,460 to 25,092,785 from December 31, 2023, to June 30, 2024[143]. Operational Highlights - The company activated cyber incident response procedures in response to a cybersecurity incident experienced by CDK, ensuring no breach of PII occurred[111]. - The company does not expect the recent CDK Global cybersecurity incident to materially impact its overall financial condition or ongoing results of operations[207]. - The Company operates 147 dealerships in the U.S. and 55 dealerships in the U.K. as of June 30, 2024[216]. Sales Performance - New vehicle retail sales amounted to $2,364.2 million, up 5.4% from $2,243.2 million year-over-year[128]. - Used vehicle retail sales were $1,453.2 million, a marginal increase from $1,450.6 million year-over-year[128]. - Retail new vehicles sold increased by 2.9% to 83,632 units, compared to 81,241 units in 2023[226]. - New vehicle retail sales increased to $4,134.9 million in 2024, up 2.3% from $4,042.8 million in 2023[226]. Cost and Expenses - Total cost of sales for Q2 2024 was $3,929.8 million, an increase of 3.9% from $3,783.0 million in Q2 2023[128]. - SG&A expenses rose to $956.8 million, a 5.1% increase from $910.8 million[226]. - Floorplan interest expense increased significantly by 58.0% to $24.7 million in 2024 from $15.6 million in 2023[236]. Compliance and Legal Matters - The company does not anticipate any material liquidity constraints or issues with compliance with debt covenants[93]. - The company has no ongoing legal proceedings that are expected to materially affect its financial condition[84]. - The company’s management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective as of June 30, 2024[82].

For the quarter ended June 2024, Group 1 Automotive (GPI) reported revenue of $4.7 billion, up 3% over the same period last year. EPS came in at $9.80, compared to $11.73 in the year-ago quarter. The reported revenue represents a surprise of -1.50% over the Zacks Consensus Estimate of $4.77 billion. With the consensus EPS estimate being $9.43, the EPS surprise was +3.92%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...

Core Insights - Group 1 Automotive reported quarterly earnings of $9.80 per share, exceeding the Zacks Consensus Estimate of $9.43 per share, but down from $11.73 per share a year ago [5] - The company generated revenues of $4.7 billion for the quarter, missing the Zacks Consensus Estimate by 1.50%, but up from $4.56 billion year-over-year [6] - The stock has underperformed the market, with a year-to-date performance of approximately 0% compared to the S&P 500's gain of 16.5% [12] Earnings Performance - The earnings surprise for the latest quarter was 3.92%, following a previous quarter where the earnings were below expectations by -0.32% [1][2] - Over the last four quarters, Group 1 Automotive has surpassed consensus EPS estimates two times [11] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $10.14, with expected revenues of $5.23 billion, and for the current fiscal year, the estimates are $38.28 EPS on $19.65 billion in revenues [14] - The upcoming earnings report for AutoNation, a competitor, is expected to show revenues of $6.76 billion, down 1.9% from the previous year [10] Industry Context - Group 1 Automotive is part of the Automotive - Retail and Whole Sales industry, which is currently ranked in the bottom 6% of over 250 Zacks industries [9] - The mixed trend in estimate revisions for Group 1 Automotive has resulted in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [3]

Core Insights - Group 1 Automotive, Inc. reported a net income from continuing operations of $137.9 million for Q2 2024, a decrease of 19.0% compared to $170.3 million in the prior year quarter [7][20] - Total revenues reached $4.7 billion, marking a 3.0% increase from $4.6 billion in Q2 2023, driven by record new vehicle, parts and service, and finance and insurance revenues [20][22] - The company experienced challenges due to extreme weather events and a service outage from CDK Global, yet managed to achieve record revenues in several categories [6][23] Financial Performance - New vehicle retail sales amounted to $2.364 billion, up 5.4% from $2.243 billion in the prior year [2] - Used vehicle retail sales were $1.453 billion, showing a slight increase of 0.2% compared to $1.451 billion [2] - Total revenues for the current quarter were $4.696 billion, a 3.0% increase compared to $4.558 billion for the same period last year [22] Profitability Metrics - Gross profit for new vehicle retail sales was $170.0 million, down 15.6% from $201.5 million [2] - Total gross profit decreased by 1.2% to $766.5 million from $775.5 million in the prior year [2][19] - The gross margin for new vehicle retail sales was 7.2%, down from 9.0% [2] Unit Sales - Retail new vehicles sold totaled 47,661 units, a 6.5% increase from 44,740 units [2] - Retail used vehicles sold were 49,260 units, up 5.3% from 46,764 units [2] - Wholesale used vehicles sold increased by 12.6% to 11,819 units from 10,493 units [2] Earnings Per Share - Diluted earnings per share from continuing operations were $10.15, a decrease of 15.6% from $12.02 in the prior year [8][20] - Adjusted diluted earnings per share from continuing operations were $9.80, down 16.4% from $11.73 [8][20] Strategic Developments - The company is focused on acquiring Inchcape's U.K. retail automotive business, expected to enhance its market presence [6] - Year-to-date, Group 1 has successfully integrated dealership operations with total expected annual revenues of approximately $1.1 billion [25] - The company disposed of one dealership and one collision center, generating approximately $75 million in annual revenues [11] Share Repurchase Activity - During the current quarter, Group 1 repurchased 149,570 shares at an average price of $307.82, totaling $46 million [26] - Year-to-date, the company has repurchased 352,920 shares, representing about 2.6% of its outstanding common shares at the beginning of the year [26]

Group 1 Automotive (GPI) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on July 24, 2024, might help the stock move higher if these key numbers are better than ...