Group 1 Automotive (GPI) Q2 Earnings Beat Estimates, Up Y/Y

Group 1 Automotive, Inc. (NYSE:GPI) reported adjusted earnings per share of $2.83 in second-quarter 2019, beating the Zacks Consensus Estimate of $2.74. The bottom line improved from the prior-year quarter’s number of $2.45. Results were aided by a stellar performance in the United States despite softness in sales in the new vehicle market.

Reportedly, the company’s net income decreased 12.8% year over year to $49.2 million. Revenues of $3.01 billion increased 2.1% year over year. Revenues beat the Zacks Consensus Estimate of $2.9 billion.

Revenues from new-vehicle retail sale rose 0.6% to $1.57 billion. The same from used-vehicle retail sale increased 2.1% to $838.9 million. Also, revenues from wholesale used-vehicle sale increased 3.4% to $96 million.

In the Parts and Service business, the top line improved 5.6% to $378.2 million. Revenues from the Finance and Insurance business rose 10.6% to $127.3 million.

Segments in Detail

Revenues in the U.S. business segment increased 15.1% year over year to $2.28 billion. The segment’s gross profit rose 7.4% year over year to $336.7 million. In the reported quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 20,318; 30,477 and 6,828, respectively.

Revenues fell 2.5% year over year to $614.4 million in the U.K. business segment. Gross profit was $64.1 million, marking a 14.3% fall from the second quarter of 2018. In the quarter, retail new-vehicle, retail used-vehicle and wholesale used-vehicle units sold were 9,266; 8,280 and 5,772, respectively.

Financial Details

Group 1 Automotive’s cash and cash equivalents increased to $37.7 million as of Jun 30, 2019, from $15.9 million as of Dec 31, 2018.

Zacks Rank & Stocks to Consider

Group 1 Automotive currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Copart, Inc (NASDAQ:CPRT) , CarMax, Inc (NYSE:KMX) and Advance Auto Parts, Inc. (NYSE:AAP) . While Copart sports a Zacks Rank #1 (Strong Buy), CarMax and Advance Auto Parts has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have shot up 39%.

CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have rallied 19.4%.

Advance Auto Parts has an expected long-term growth rate of 11.6%. In the past year, shares of the company have improved 7.3%.

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 (NASDAQ:MSFT) in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>