Group 1 Shares Rise 6% Since Q3 Earnings Miss Expectations

Shares of Group 1 Automotive GPI gained 6% since it reported third-quarter 2024 results. It reported adjusted earnings per share (EPS) of $9.90, which missed the Zacks Consensus Estimate of $9.93 and fell 18% year over year. The automotive retailer registered net sales of $5.22 billion, beating the Zacks Consensus Estimate of $5.14 billion. The top line also rose from the year-ago quarter’s $4.71 billion.Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.Group 1 Automotive, Inc. Price, Consensus and EPS Surprise Group 1 Automotive, Inc. price-consensus-eps-surprise-chart | Group 1 Automotive, Inc. QuoteQuarter HighlightsNew vehicle retail sales increased 13.4% from the prior-year quarter to $2.57 billion and exceeded our projection of $2.56 billion on the back of higher-than-expected volumes. Total retail new vehicles sold were 53,775 units, which increased 18.6% year over year and surpassed our forecast of 49,104 units. Average selling price per unit was $48,390, down 3.8% year over year. The gross profit from the new vehicle retail unit totaled $183.2 million, down 5.7% year over year.Used-vehicle retail sales rose 6.2% from the year-ago period to $1.66 billion but missed our forecast of $1.68 billion. Total retail used vehicles sold were 55,907 units, up 10.1% year over year, exceeding our expectation of 53,919 units. The average selling price per unit came in at $29,630, down 3.5% year over year. The gross profit from the unit was $88 million, up 8.2% year over year.Used-vehicle wholesale sales rose 7.4% year over year to $123.2 million but missed our expectation of $133.3 million. The unit recorded a gross profit of $0.4 million against the gross loss of $2.3 million in the year-ago period. In the Parts and Service business, the top line rose 16.4% from the year-ago quarter to $660 million and gross profit increased 17% year over year to $367 million. Revenues from the Finance and Insurance business came in at $214.1 million, up 7.4% from the year-ago period’s level.Segments in DetailIn the reported quarter, revenues from the U.S. business segment rose 1.8% year over year to $3.97 billion but missed our forecast of $4.3 billion. The segment’s gross profit declined 0.7% to $678.1 million and fell short of our prediction of $705.2 million. During the reported quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 39,700, 38,775 and 9,577, respectively.In the third quarter, revenues jumped 55.2% year over year to $1.25 billion for the U.K. business segment, beating our estimate of $893.1 million due to robust sales of new vehicles. Gross profit was $174.5 million, which surged 68.6% from the year-ago quarter and topped our projection of $108.1 million. During the reported quarter, the retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 14,075, 17,132 and 4,643, respectively.Financial PositionSelling, general and administrative expenses were up 19.1% year over year to $591.6 million. Group 1 had cash and cash equivalents of $58.7 million as of Sept. 30, 2024, up from $57.2 million as of 2023-end. Total debt was $2.89 billion as of Sept. 30, 2024, up from $2.1 billion as of Dec. 31, 2023.During the quarter under discussion, GPI repurchased 85,245 shares at an average price of $349.55 per common share for a total of $29.8 million. The company currently has $174.8 million remaining on its authorized stock buyback program.Zacks Rank & Key PicksGPI currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the auto space are Toyota Motor Corporation TM, Standard Motor Products, Inc. SMP and BYD Company Limited BYDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for TM’s fiscal 2025 sales suggests year-over-year growth of 3.67%. EPS estimates for fiscal 2025 have improved 56 cents in the past 60 days. EPS estimates for fiscal 2026 have improved 20 cents in the past seven days.The Zacks Consensus Estimate for SMP’s 2024 sales and earnings suggests year-over-year growth of 4.3% and 3.77%, respectively. EPS estimates for 2024 have improved by 2 cents in the past seven days. EPS estimates for 2025 have improved by 2 cents in the past 90 days.The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 20.91% and 23.63%, respectively. EPS estimates for 2024 and 2025 have improved by 12 cents and 13 cents, respectively, in the past seven days.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report Group 1 Automotive, Inc. (GPI): Free Stock Analysis Report Byd Co., Ltd. (BYDDY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks