Group 1 Automotive
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Group 1 Automotive beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share increased significantly.
Gross margins were steady, operating margins grew, and net margins increased.
Group 1 Automotive reported revenue of $1.63 billion. The nine analysts polled by S&P Capital IQ expected a top line of $1.59 billion. GAAP sales were 13% higher than the prior-year quarter's $1.44 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.94. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.88 per share on the same basis. GAAP EPS of $0.90 for Q4 were 96% higher than the prior-year quarter's $0.46 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.1%, about the same as the prior-year quarter. Operating margin was 3.1%, 30 basis points better than the prior-year quarter. Net margin was 1.3%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.53 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $6.66 billion. The average EPS estimate is $4.12.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 95 members rating the stock outperform and 39 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Group 1 Automotive a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Group 1 Automotive is outperform, with an average price target of $54.80.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.