Group 1 Automotive GPI reported adjusted earnings per share of $3.77 in second-quarter 2020, beating the Zacks Consensus Estimate of 91 cents. The bottom line also rose from the prior-year quarter’s $2.83 per share. Higher-than-expected revenues from new vehicles led to the outperformance.
Revenues of $2.13 billion fell 29.1% year over year. The top line, however, beat the Zacks Consensus Estimate of $2.06 billion.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
Group 1 Automotive, Inc. price-consensus-eps-surprise-chart | Group 1 Automotive, Inc. Quote
New-vehicle retail sales declined 32.1% from the prior-year quarter to $1.06 billion. However, the figure surpassed the Zacks Consensus Estimate of $1.04 billion. Used-vehicle sales fell 23.6% from the year-ago quarter to $641.2 million. The metric also missed the consensus mark of $794 million. For the Parts and Service business, the top line slumped 25.4% from a year ago to $282 million. It also missed the Zacks Consensus Estimate of $312 million. Revenues from the Finance and Insurance business were down 24% from the prior-year period to $96.7 million. It also missed the Zacks Consensus Estimate of $98 million.
Segments in Detail
Revenues in the U.S. business segment fell 19.6% year over year to $1.83 billion. The segment’s gross profit also dropped 13.9% year over year to $324.5 million. In the reported quarter, retail new-vehicle, used-vehicle, and wholesale used-vehicle units sold were 21,937, 26,132 and 5,150, respectively.
Revenues declined 57.1% year over year to $263.5 million for the U.K. business segment. Gross profit was $29.4 million, marking a 54.1% decrease from the second quarter of 2019. In the quarter under review, retail new-vehicle, used-vehicle, and wholesale used-vehicle units sold were 3,841, 4,040 and 1,829, respectively.
Revenues for the Brazil business segment slid 67.5% year over year to $36.6 million. Further, the segment’s gross profit declined 63.3% year over year to $4.9 million. In the reported quarter, retail new-vehicle, used-vehicle and wholesale used-vehicle units sold were 694, 356 and 324, respectively.
Group 1 Automotive’s cash and cash equivalents fell to $72.7 million as of Jun 30, 2020, from $23.8 million on Dec 31, 2019. Long-term debt was $1,360.7 million as of Jun 30, 2020, marking a decrease from $1,432.1 million recorded as of Dec 31, 2019.
Zacks Rank & Stocks to Consider
Currently, Group 1 Automotive carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto sector include AutoNation AN, Geely Automobile Holdings Ltd. GELYY and LCI Industries LCII. While AutoNation sports a Zacks Rank of 1(Strong Buy), Geely Automobile and LCI Industries carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of AutoNation have rallied 8.8% year to date compared with the industry’s growthof 5.1%.
Shares of Geely Automobile have climbed 10.3% year to date against the industry’s decline of 15.7%.
Shares of LCI Industries have appreciated 22.1% year to date as against the industry’s decline of 8.3%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
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
AutoNation, Inc. (AN) : Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report
Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report
LCI Industries (LCII) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research