Stay Cool with Active Stock: Group 1 Automotive, Inc. (NYSE: GPI)

On 01 Nov 2019, Group 1 Automotive, Inc. (NYSE: GPI) remained among the day gainers and traded with change of 1.62% on volume of 186801 shares in the last session as compared to average volume of 197105 shares. During last trade its minimum price was $99.5 and it gained highest price of $101.79. GPI has total market capitalization of $1876599606. Its closing value stands at $101.05.

Group 1 Automotive, Inc. (GPI) recently stated 2019 third quarter net income of $38.0M, diluted earnings per ordinary share of $2.04, adjusted net income (a non-GAAP measure) of $56.4M, and adjusted diluted earnings per ordinary share (a non-GAAP measure) of $3.02.  The Company’s 2019 third quarter total revenue was an all-time quarterly record of $3.1B.

Third quarter 2019 adjusted net income and diluted earnings per share exclude about $18.4M of net after-tax adjustments, or $0.98 per ordinary share, for non-core items.  These adjustments consist of catastrophic event costs of about $9.0M after-tax, or $0.48 per ordinary share, non-cash asset impairments of $8.3M, or $0.44 per ordinary share, and a net loss on real estate and dealership transactions of $1.1M, or $0.06 per ordinary share.  Reconciliations of non-GAAP financial measures are included in the attached financial tables.

“Our achievement of new quarterly records for total revenue and adjusted EPS in a flat U.S. new vehicle sales market, as well as a U.K. market in political turmoil, is a testimony to the strong operating execution of our entire team – especially in the U.S.,” stated Earl J. Hesterberg, Group 1’s president and chief executive officer.  “Same Store U.S. gross profit growth of 16.6% in total used vehicles and 9.9% in parts and service are both remarkable performances, which drove one of the best quarters in our Company’s history.”

Segment Results for Third Quarter 2019 (year-over-year comparable basis)

United States:
The Company’s U.S. operations accounted for 77.7 percent of total revenues and 83.1 percent of total gross profit.  Total U.S. revenues were $2.4B, a raise of 10.1 percent.  Retail used vehicle revenues increased 15.0 percent, F&I revenues increased 10.9 percent, parts and service revenues increased 8.8 percent, and new vehicle revenues increased 7.9 percent.

Total gross profit grew 9.8 percent, to $387.0M.  Parts and service Same Store gross profit grew an all-time record of 9.9 percent, to $168.0M.  Same Store used vehicle gross profit grew 16.4 percent, to $42.5M.  Same Store used retail unit sales grew 11.9 percent, as Val-U-Line ®retail unit sales grew 10.3 percent and represented 10.8 percent of our quarterly used unit sales.  Same Store total used vehicle gross profit PRU increased $55, or 5.1 percent, to $1,127.  Same Store F&I gross profit PRU increased $54, or 3.2 percent per unit, to $1,751.

SG&A expenses as a percent of gross profit increased 500 basis points, to 73.7 percent.  Same Store adjusted SG&A expenses as a percent of gross profit increased 40 basis points, to 70.4 percent.

“Group 1’s planned initiatives in the areas of omnichannel capabilities, expanded used vehicle offerings with our Val-U-Line® brand, and increased service capacity have been the key drivers of importantly improved profitability in our U.S. operations,” stated Daryl Kenningham, Group 1’s president of U.S. operations.  “We are continuing to demonstrate that by focusing on used vehicles and aftersales operations, we can deliver important profit improvements in our U.S. business.”

The average true range of the stock is observed at 3.30 and the relative strength index of the stock is recorded at 64.01. EPS growth for this year is 19.90% and EPS growth for next year is expected to reach at 4.92%. EPS growth in past five years was 12.50% while EPS growth in next five years is projected to arrive at -3.00%. Sales growth past 5 years was measured at 5.40%. The short ratio in the company’s stock is documented at 12.48 and the short float is around of 13.91%.

Ronald Hemphill

Ronald Hemphill– Business Stories My Name is Ronald Hemphill and I am also the main source from the ‘’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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