Earnings Alerts

Group 1 Automotive (GPI) Earnings Surpass Expectations with Strong 4Q Revenue Growth

By January 29, 2025 No Comments
  • Group 1 Automotive reported a revenue of $5.55 billion for the fourth quarter, surpassing the estimated $5.26 billion and reflecting a 24% increase year-over-year.
  • New vehicle revenue grew by 23.7% compared to 17.2% year-over-year.
  • Used vehicle revenue saw a significant rise of 23.9% compared to a modest 1.1% increase year-over-year.
  • The company reported a gross margin of 15.9%, slightly down from 16.3% year-over-year and below the estimated 16.2%.
  • Adjusted earnings per share (EPS) from continuing operations were $10.02, higher than the $9.50 reported year-over-year and the estimated $9.15.
  • Analyst recommendations include 7 buys, 3 holds, and 1 sell for Group 1 Automotive stock.

Group 1 Automotive on Smartkarma



Group 1 Automotive, a key player in the automotive dealership and services sector, has attracted the attention of analysts on Smartkarma. Baptista Research recently delved into the company’s performance in the third quarter of 2024, highlighting a mix of strengths and areas for improvement. The research report evaluates the company’s operational status, strategic initiatives, and financial metrics, providing insights into the complex landscape of Group 1 Automotive‘s achievements and challenges. Baptista Research aims to assess the factors influencing the company’s future stock price, conducting an independent valuation utilizing a Discounted Cash Flow (DCF) methodology.

In another analysis by Baptista Research on Smartkarma, Group 1 Automotive‘s resilience amidst industry challenges was spotlighted. The report focused on the company’s second quarter of 2024 financial results, reflecting the broader opportunities and obstacles in the automotive sector. Despite facing disruptions like extreme weather events and a significant system outage from CDK, its dealership management service provider, Group 1 Automotive managed to mitigate the financial impact efficiently. The firm estimated the pretax income impact of the CDK incident at around $17 million and one-time pretax compensation payments to employees at $5.9 million. This research emphasizes the company’s ability to navigate challenges and maintain growth momentum.



A look at Group 1 Automotive Smart Scores

FactorScoreMagnitude
Value3
Dividend2
Growth4
Resilience2
Momentum5
OVERALL SMART SCORE3.2

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, Inc., owning and operating car dealerships across several states, has been assigned Smartkarma Smart Scores to assess its overall outlook. The company receives a high score for Momentum, indicating a strong upward trend in its performance. This suggests that Group 1 Automotive is currently experiencing positive market momentum, which could bode well for its future growth prospects.

Furthermore, the company scores well in Growth, showcasing potential for expansion and development. Despite lower scores in Dividend and Resilience, Group 1 Automotive‘s promising scores in Value highlight that it may be considered an attractive investment option based on its valuation metrics. In summary, while facing challenges in certain areas, Group 1 Automotive‘s strong Momentum and Growth scores indicate a potentially optimistic long-term outlook.


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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