Group 1 Automotive-Group 1 Q4 Earnings Surpass Expectations, Sales Rise Y/Y

Core Insights - Group 1 Automotive (GPI) reported fourth-quarter 2024 adjusted earnings per share (EPS) of $10.02, exceeding the Zacks Consensus Estimate of$ 9.21 and reflecting a year-over-year increase of 5.5% [1] - The company achieved net sales of $5.55 billion, surpassing the Zacks Consensus Estimate of$ 5.20 billion and increasing from $4.48 billion in the same quarter last year [1] Quarterly Highlights - New vehicle retail sales rose 23.7% year over year to$ 2.86 billion, exceeding projections of $2.74 billion, with total retail new vehicles sold reaching 57,939 units, a 26.4% increase [2] - Used-vehicle retail sales increased 23.9% from the previous year to$ 1.65 billion, surpassing the forecast of $1.49 billion, with total retail used vehicles sold at 55,337 units, also up 23.9% [3] - Used-vehicle wholesale sales grew 26% year over year to$ 128.9 million, exceeding expectations of $112.3 million, while the Parts and Service business saw revenues rise 24.8% to$ 680.2 million [4] Segment Performance - U.S. business segment revenues increased 12.3% year over year to $4.23 billion, though it fell short of the forecast of$ 4.29 billion, with gross profit rising 8.7% to $695.9 million [5] - The U.K. business segment experienced a significant revenue jump of 85.3% year over year to$ 1.31 billion, beating estimates due to strong retail sales, with gross profit surging 102.6% to $183.3 million [6] Financial Position - Selling, general and administrative expenses rose 26% year over year to$ 614.3 million, while cash and cash equivalents decreased to $34.4 million from$ 57.2 million [7] - Total debt increased to $2.91 billion as of December 31, 2024, up from$ 2.1 billion a year earlier [7] Share Repurchase - During the quarter, GPI repurchased 80,300 shares at an average price of $398.30 per share, totaling$ 32 million, with $476.1 million remaining on its authorized stock buyback program [8]