Core Viewpoint - Analysts project Group 1 Automotive (GPI) will report quarterly earnings of $9.54 per share, a 0.5% increase year over year, with revenues expected to reach $5.32 billion, reflecting a 19% increase from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 0.8% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts expect 'Revenues- New vehicle retail sales' to be $2.58 billion, an increase of 18.2% year over year [5]. - 'Revenues- Finance, insurance and other, net' is projected to reach $209.32 million, indicating a 10.8% year-over-year change [5]. - 'Revenues- Total Used vehicle' is estimated at $1.76 billion, reflecting a 15.8% increase from the prior year [5]. - 'Revenues- Used vehicle wholesale sales' are projected to be $118.63 million, showing an 11.9% year-over-year change [6]. - 'Revenues- United States - New vehicle retail sales' is expected to be $1.99 billion, a 10.5% increase from the previous year [6]. - 'Revenues- United States - Used vehicle retail sales' is estimated at $1.17 billion, reflecting a 6.3% year-over-year change [7]. - 'Revenues- United Kingdom - New vehicle retail sales' is projected to reach $592.75 million, indicating a significant 54.9% increase year over year [7]. - 'Revenues- United Kingdom - F&I, net' is expected to be $26.94 million, a 53.9% increase from the year-ago quarter [8]. Units Sold Estimates - 'Units sold - Retail new vehicles sold' is projected to reach 53,958, compared to 44,302 in the same quarter last year [8]. - 'Units sold - Retail used vehicles sold' is expected to be 58,076, up from 49,183 in the same quarter of the previous year [9]. - The consensus estimate for 'Average sales price per unit sold - United States - Used Vehicle Retail' stands at $29,780.44, compared to $28,855 a year ago [9]. - 'Units sold - United Kingdom - Retail new vehicles sold' is projected to be 15,332, compared to 8,961 in the same quarter last year [10]. Market Performance - Group 1 Automotive shares have decreased by 2.2% in the past month, while the Zacks S&P 500 composite has declined by 5.6% [10].

HOUSTON, April 8, 2025 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), a Fortune 250 automotive retailer with 260 dealerships located in the U.S. and U.K., today announced that it will release financial results for the first quarter ended March 31, 2025 on Thursday, April 24, 2025 before the market opens.  Daryl Kenningham, Group 1's President and Chief Executive Officer, and the Company's senior management team will host a conference call to discuss the results later that ...

Core Insights - The article emphasizes the importance of value investing and highlights Group 1 Automotive (GPI) as a strong value stock opportunity based on its financial metrics [2][3][7] Valuation Metrics - GPI has a Price-to-Book (P/B) ratio of 1.76, which is favorable compared to the industry average of 2.00. The P/B ratio has fluctuated between 1.28 and 2.17 over the past 52 weeks, with a median of 1.65 [4] - The Price-to-Sales (P/S) ratio for GPI is 0.26, slightly below the industry average of 0.27, indicating a solid valuation based on revenue [5] - GPI's Price-to-Cash Flow (P/CF) ratio stands at 8.35, which is attractive compared to the industry average of 9.69. The P/CF ratio has ranged from 5.13 to 10.31 in the past year, with a median of 7.44 [6] Investment Outlook - The combination of GPI's strong valuation metrics and positive earnings outlook suggests that the stock is currently undervalued, making it an appealing option for value investors [7]

Company Overview - Group 1 Automotive, Inc. is a leading automotive retailer with operations primarily in the United States and the U.K., operating 150 dealerships in the U.S. and 55 in the U.K. [11] - The company sells new and used cars and light trucks, and also offers vehicle financing, insurance, service contracts, maintenance, repair services, and aftermarket automotive products [11]. Investment Metrics - Group 1 Automotive has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a solid position in the market [12]. - The company has a Value Style Score of B, supported by attractive valuation metrics, including a forward P/E ratio of 9.36, which is appealing to value investors [12]. - Over the last 60 days, five analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.80 to $41.18 per share [12]. - Group 1 Automotive has an average earnings surprise of 3%, suggesting a positive trend in earnings performance [12]. Investment Recommendation - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Group 1 Automotive is recommended for investors' consideration [13].

Core Viewpoint - Group 1 Automotive (GPI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Group 1 Automotive suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Earnings Estimate Revisions - Group 1 Automotive is projected to earn $41.18 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 5% [8]. - Over the past three months, the Zacks Consensus Estimate for Group 1 Automotive has risen by 2.6% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Group 1 Automotive in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Regulatory Environment - The U.K. plans to ban sales of new gasoline and diesel-powered vehicles after 2035, which could impact vehicle offerings and increase operational costs [67]. - The U.S. EPA finalized new emissions standards for light and medium-duty vehicles for model years 2027 through 2032, aimed at reducing GHG emissions [69]. - The company is subject to risks associated with environmental regulations, including potential increases in operational costs due to stricter GHG emissions limits [68]. - The company may incur significant costs related to compliance with new climate-related disclosure laws, starting in 2026, which could impact access to capital [124]. - The company is assessing the impact of California's Climate Corporate Data Accountability Act, which requires annual disclosure of GHG emissions for companies with revenues over $1 billion [124]. - The company is subject to operational risks associated with environmental laws, which may impose significant costs and liabilities [130]. Market Conditions - The U.K. market fell short of mandated targets for new zero emissions vehicles in 2024, with higher targets set for 2025, potentially challenging new vehicle sales [90]. - Inflation and increased energy costs could adversely impact operations and customer demand for vehicles and services [86]. - A significant portion of vehicle purchases are financed, and tightening credit markets may decrease the availability of automotive loans, adversely affecting sales [87]. - Tariffs and market developments could increase production costs for OEMs, potentially leading to higher vehicle prices and reduced demand [97]. - Changes in fuel prices and consumer preferences could adversely affect vehicle sales volumes and service revenues [121]. Competition and Sales - The company faces significant competition in automotive sales, which could adversely impact sales volumes and margins [100]. - The company is dependent on relationships with manufacturers, which may limit its ability to acquire new dealerships or maintain existing agreements [98]. - The transition to an agency model by Mercedes Benz in the U.K. resulted in reduced revenues, with the company receiving only a commission for each sale [106]. - Increased competition for dealership acquisitions may result in fewer opportunities and higher acquisition prices [103]. - Vehicle technology advancements and changes in consumer preferences may adversely affect new and used vehicle sales volumes [107]. Financial Performance - The company recognized impairment charges for intangible franchise rights amounting to $28.2 million, $25.1 million, and $1.3 million for the years ended December 31, 2024, 2023, and 2022 respectively [134]. - The company’s debt securities are rated just below investment-grade, and any downgrade could negatively impact access to debt markets and increase borrowing costs [91]. - The company faces potential increases in insurance costs and changes in coverage availability, which could materially impact financial conditions [116]. - The company has not recorded any goodwill impairments in the past three years, but market conditions could lead to future impairment charges [134]. Operational Risks - The company relies on vehicle manufacturers for new vehicle inventory, and any disruptions in their production could materially affect business operations [93]. - The company relies on third-party vendors for key operational processes, and disruptions in their services could adversely impact business [108]. - Cybersecurity incidents, such as the one experienced by CDK Global, could negatively affect the company's operations and financial condition [111]. - The company is self-insured for a portion of its potential liabilities, which may expose it to significant financial risks [116]. - The company may face challenges in integrating acquired dealerships, which could impact revenue growth and operational efficiency [105]. Workforce and Internal Controls - As of December 31, 2024, the company had 20,413 employees, with 13,398 in the U.S. and 7,015 in the U.K. [74]. - Management has designed and implemented internal controls and procedures, which are periodically reviewed and updated [137]. - There has not been a material failure of internal controls reported [137]. - Any failure or circumvention of controls could have a material adverse effect on business operations and financial condition [137]. Expansion and Growth - The company doubled its footprint in the U.K. during the current year through the acquisition of Inchcape Retail [104].

Core Viewpoint - Group 1 Automotive (GPI) has increased its annual dividend for 2025 to $2 per share, reflecting a 6% rise from the previous year, which is indicative of the company's financial strength and commitment to shareholder returns [1][2]. Dividend and Financial Performance - The quarterly dividend of 50 cents per share will be distributed on March 17, 2025, to shareholders on record as of March 3, 2025 [1]. - GPI has raised dividends 11 times in the last five years, with an annualized growth rate of 12.5%, and maintains a sustainable payout ratio of just 5% [2]. - Year-to-date, GPI shares have increased by 11.2%, outperforming the Zacks Retail – Wholesale sector's 8.3% and the Zacks Automotive – Retail and Wholesale industry's 10.6% [3]. Stock Valuation and Trends - GPI shares are currently undervalued with a Value Score of A, trading at a forward price/sales ratio of 0.29x compared to the sector's 1.67x [7]. - The stock is trading above both the 50-day and 200-day moving averages, indicating a bullish trend [9]. Strategic Acquisitions and Aftersales Growth - GPI has integrated 54 new stores and two corporate organizations in Q4 2024, with total acquired revenues of approximately $4 billion, including the Inchcape buyout expected to contribute $2.7 billion in annualized revenues [12]. - The aftersales business has become a key profitability driver, with Q4 2024 revenues and gross profit showing year-over-year growth, alongside a 6.5% increase in repair orders [13]. Partnerships and Revenue Sources - GPI has established strong partnerships with major automotive brands, enhancing its competitive edge and product offerings [14]. - Key brands such as Toyota, General Motors, and Ford contribute 19%, 9%, and 7% of GPI's total revenues, respectively, providing diversification against market fluctuations [15]. Earnings and Revenue Estimates - The Zacks Consensus Estimate for GPI's Q1 2025 EPS is $9.67, reflecting a 1.9% year-over-year growth, with revenues estimated at $5.29 billion, indicating an 18.43% increase [17]. - For full-year 2025, the EPS estimate is $40.86, up 1.2% over the past month, with revenues projected at $21.83 billion, representing a 9.52% year-over-year growth [18]. Macroeconomic Challenges - The U.K. automotive market faces challenges due to government-imposed zero-emissions vehicle mandates, which have not been met, creating pressure on new vehicle sales [19]. - Geopolitical uncertainties, including tariffs and trade restrictions, pose additional risks to GPI's cost structure and profitability [20].

Core Insights - Group 1 Automotive, Inc. will host an Analyst Day event on February 13, 2025, at the New York Stock Exchange, led by President and CEO Daryl Kenningham [1][2] - The Analyst Day will cover the Company's 2024 financial performance, 2025 priorities, updates on U.K. restructuring activities, and include a Q&A session [2] Company Overview - Group 1 operates 258 automotive dealerships, 330 franchises, and 39 collision centers in the U.S. and U.K., offering 35 automobile brands [3] - The Company engages in selling new and used cars, arranging vehicle financing, selling service and insurance contracts, and providing automotive maintenance and repair services [3]

Core Viewpoint - Group 1 Automotive, Inc. has announced a 6% increase in its annual dividend rate for 2025, raising it to $2.00 per share from $1.88 per share in 2024 [1] Group 1 Automotive Overview - Group 1 operates 258 automotive dealerships and 330 franchises in the U.S. and U.K., offering 35 brands of automobiles [2] - The company provides a range of services including the sale of new and used cars, vehicle financing, service and insurance contracts, automotive maintenance and repair, and vehicle parts [2] Dividend Details - The approved dividend of $2.00 per share includes a payment of $0.50 per share scheduled for March 17, 2025, to stockholders of record as of March 3, 2025 [1]

Company Overview - Group 1 Automotive, Inc. is a leading automotive retailer with operations primarily in the United States and the U.K., operating 150 dealerships in the U.S. and 55 in the U.K. [11] - The company sells new and used cars and light trucks, and also offers vehicle financing, insurance, service contracts, maintenance, repair services, and aftermarket automotive products [11]. Investment Analysis - Group 1 Automotive has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [12]. - The company has a Momentum Style Score of A, with shares increasing by 11% over the past four weeks [12]. - Two analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.47 to $40.59 per share [12]. - Group 1 Automotive has an average earnings surprise of 3%, suggesting potential for positive performance [12]. - With a strong Zacks Rank and top-tier Momentum and VGM Style Scores, Group 1 Automotive is recommended for investors' consideration [13].