Group 1 Automotive Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Group 1 Automotive (NYS: GPI) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Group 1 Automotive beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.


Gross margins contracted, operating margins increased, net margins increased.

Revenue details
 Group 1 Automotive logged revenue of $2.34 billion. The 10 analysts polled by S&P Capital IQ expected net sales of $2.24 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $1.90 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $1.52. The 12 earnings estimates compiled by S&P Capital IQ predicted $1.41 per share. Non-GAAP EPS of $1.52 for Q2 were 22% higher than the prior-year quarter's $1.25 per share. GAAP EPS of $1.43 for Q2 were 19% higher than the prior-year quarter's $1.20 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 14.6%, 50 basis points worse than the prior-year quarter. Operating margin was 3.5%, 20 basis points better than the prior-year quarter. Net margin was 1.6%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $2.30 billion. On the bottom line, the average EPS estimate is $1.49.

Next year's average estimate for revenue is $8.76 billion. The average EPS estimate is $5.32.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 94 members out of 132 rating the stock outperform, and 38 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Group 1 Automotive a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Group 1 Automotive is outperform, with an average price target of $74.73.

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The article Group 1 Automotive Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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