Group 1 Automotive (GPI, Financial) reported first-quarter revenue of $5.5 billion, surpassing the anticipated $5.44 billion projected by analysts. This positive outcome highlights the company's solid performance in the U.S. market, despite ongoing challenges posed by tariff and trade policy adjustments.
Daryl Kenningham, President and CEO of Group 1, emphasized the company's strategic execution in this uncertain environment. The leadership remains vigilant and ready to adapt to evolving market conditions, ensuring continued resilience and success.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Group 1 Automotive Inc (GPI, Financial) is $477.83 with a high estimate of $520.00 and a low estimate of $385.00. The average target implies an upside of 19.86% from the current price of $398.65. More detailed estimate data can be found on the Group 1 Automotive Inc (GPI) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Group 1 Automotive Inc's (GPI, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Group 1 Automotive Inc (GPI, Financial) in one year is $380.30, suggesting a downside of 4.6% from the current price of $398.65. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Group 1 Automotive Inc (GPI) Summary page.
GPI Key Business Developments
Release Date: January 29, 2025
- Adjusted Net Income: $133.9 million for Q4 2024.
- Adjusted Diluted Earnings Per Share: $10.02 for Q4 2024.
- Total Revenue: $5.5 billion for Q4 2024, an all-time quarterly record.
- New Vehicle Sales Revenue: $2.9 billion for Q4 2024.
- Parts and Service Revenue: $680 million for Q4 2024.
- Finance and Insurance (F&I) Revenue: $226 million for Q4 2024.
- Full Year Total Revenue: $19.9 billion for 2024, an all-time annual record.
- Full Year Adjusted Net Income: $530.6 million for 2024.
- Full Year Adjusted Diluted Earnings Per Share: $39.21 for 2024.
- US New Vehicle Revenue: $2.3 billion for Q4 2024, an all-time quarterly record.
- US Used Car Volume Growth: 7% year-over-year for Q4 2024.
- US F&I Gross Profit Per Unit (GPU): $2,415 for Q4 2024, a 3% increase sequentially and year-over-year.
- US Adjusted SG&A as a Percentage of Gross Profit: 64.6% for Q4 2024.
- UK Total Revenue Growth: 85.3% year-over-year for Q4 2024.
- Liquidity: $1.2 billion as of December 31, 2024.
- Free Cash Flow: $504 million for full year 2024.
- Share Repurchases: 518,000 shares repurchased in 2024 at an average price of $311.67.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Group 1 Automotive Inc (GPI, Financial) reported all-time quarterly record revenues of $5.5 billion, with significant contributions from new vehicle sales, parts and service revenues, and F&I.
- The company achieved record new vehicle units sold in the U.S., with volumes outpacing the industry and a sequential improvement in PRU.
- Parts and service revenues reached a record for the quarter, with same-store growth of nearly 9% and customer pay same-store growth up more than 8%.
- GPI increased its technician headcount by 7% on a same-store basis in the U.S., indicating a strong focus on expanding aftersales capacity.
- The company maintained a strong balance sheet with $1.2 billion in liquidity, supporting a flexible capital allocation approach, including acquisitions and share repurchases.
Negative Points
- The integration of Inchcape's retail dealerships in the UK has been challenging, with incremental SG&A costs impacting results.
- The UK market faces a challenging macroeconomic backdrop, with government-imposed zero emissions vehicle mandates proving difficult to achieve.
- UK same-store retail used vehicle units sold decreased by 2% year-over-year, indicating challenges in the used car market.
- UK SG&A as a percentage of gross profit worsened sequentially, highlighting ongoing cost management challenges.
- The company faced $33 million in impairment charges primarily attributable to franchise rights and tangible assets for four U.S. dealerships.
