Why Is Group 1 Automotive (GPI) Up 1.2% Since Last Earnings Report?

Core Viewpoint - Group 1 Automotive reported mixed financial results for Q1 2024, with adjusted EPS missing expectations while net sales exceeded estimates, indicating potential challenges ahead for the company [2][3]. Financial Performance - Adjusted EPS for Q1 2024 was $9.49, missing the Zacks Consensus Estimate of $9.52 and declining 13.2% year over year [2]. - Net sales reached $4.5 billion, surpassing the Zacks Consensus Estimate of $4.3 billion and increasing from $4.13 billion in the same quarter last year [2]. Segment Performance - New vehicle retail sales increased 11.6% year over year to $2.18 billion, with total retail new vehicles sold at 44,302 units, up 11.7% from the previous year [3]. - Used-vehicle retail sales rose 5% year over year to $1.42 billion, with total retail used vehicles sold at 49,183 units, an increase of 8.2% [4]. - Used-vehicle wholesale sales fell 5.3% year over year to $106 million, resulting in a gross loss of $0.9 million [5]. - Parts and Service revenues increased 5.1% year over year to $576.2 million, with gross profit rising 5.3% to $313 million [5]. Geographic Performance - U.S. business segment revenues climbed 9.1% year over year to $3.65 billion, with gross profit growing 3.5% to $639.1 million [6]. - U.K. business segment revenues rose 4.7% year over year to $824.8 million, although gross profit decreased 6.2% to $103.5 million [7]. Financial Position - Selling, general and administrative expenses increased 2.9% year over year to $476.1 million [8]. - Cash and cash equivalents decreased to $41.9 million as of March 31, 2024, down from $57.2 million at the end of 2023 [8]. - Total debt rose to $2.6 billion as of March 31, 2024, up from $2.1 billion at the end of 2023 [8]. Shareholder Actions - During the quarter, Group 1 repurchased 203,350 shares at an average price of $264.41 per share, totaling $53.8 million [9]. - The company has $89.6 million remaining on its authorized stock buyback program [9]. Market Outlook - Group 1 Automotive holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return from the stock in the coming months [12]. - The company has a Growth Score of B, a Momentum Score of F, and a Value Score of A, placing it in the top 20% for the value investment strategy [11].