- Group 1 Automotive‘s second-quarter revenue reached $5.70 billion, exceeding estimates of $5.63 billion.
- Revenue increased by 21% year-over-year.
- New vehicle revenue rose by 15.7%, compared to a 5.4% increase in the previous year.
- Used vehicle revenue surged by 27.2%, significantly higher than the 0.2% increase year-over-year.
- The gross margin improved to 16.4%, surpassing both the previous year’s 16.3% and the estimate of 15.9%.
- Adjusted EPS from continuing operations was $11.52, up from $9.80 the previous year, beating the estimate of $10.50.
- Parts and service operations saw substantial growth, with double-digit same-store customer pay increases and benefits from warranty work.
- The current market recommendation is 5 buys, 7 holds, and 0 sells.
Group 1 Automotive on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are providing insightful coverage of Group 1 Automotive, a company making waves in the U.K. and U.S. markets. In a report titled “Group 1 Automotive: Expansion and Integration in the U.K. Market & Major Growth Drivers,” Baptista Research highlights the company’s first-quarter 2025 financial results, showcasing both positive and challenging aspects of its operations. With a quarterly record gross profit of $892 million and strategic moves driving growth, Group 1 Automotive is navigating market dynamics and operational efficiencies to drive success.
Furthermore, in another report titled “Group 1 Automotive: Why Its Service Business Could Be the Real MVP in 2025,” Baptista Research discusses the company’s performance in the fourth quarter and fiscal year 2024. While reporting record revenues driven by strong U.S. business execution, challenges in the U.K. segment stand out due to macroeconomic hurdles related to zero emissions vehicle mandates. Analysts are closely monitoring how Group 1 Automotive navigates these challenges to maintain its growth trajectory.
A look at Group 1 Automotive Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Group 1 Automotive, a company that owns and operates automobile dealerships mainly in the southern United States, shows a mixed outlook according to Smartkarma’s Smart Scores. While the company scores well in terms of momentum with a score of 4, indicating strong market performance, its scores for value, dividend, growth, and resilience are more moderate. With a value score of 3, growth score of 3, and resilience score of 2, Group 1 Automotive is positioned neutrally in these areas. However, its dividend score of 2 suggests a slightly lower outlook in terms of dividend payments to investors.
Overall, Group 1 Automotive seems to have a decent outlook, especially in terms of market momentum. The company’s strong presence in the automobile dealership sector across several states provides a stable foundation. Investors may need to carefully consider the company’s performance in value, dividend yield, growth potential, and resilience in the face of market challenges to make informed investment decisions regarding Group 1 Automotive‘s long-term prospects.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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