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Can Group 1 Automotive Beat These Numbers?

By Seth Jayson - Updated Apr 10, 2017 at 1:49PM

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Checking expectations

Group 1 Automotive (NYSE: GPI) is expected to report Q1 earnings on April 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Group 1 Automotive's revenues will grow 15.1% and EPS will increase 8.2%.

The average estimate for revenue is $1.92 billion. On the bottom line, the average EPS estimate is $1.05.

Revenue details
Last quarter, Group 1 Automotive booked revenue of $1.94 billion. GAAP reported sales were 19% higher than the prior-year quarter's $1.63 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.99. GAAP EPS of $0.67 for Q4 were 20% lower than the prior-year quarter's $0.84 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 14.5%, 60 basis points worse than the prior-year quarter. Operating margin was 2.7%, 40 basis points worse than the prior-year quarter. Net margin was 0.9%, 40 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $8.64 billion. The average EPS estimate is $5.11.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 92 members out of 129 rating the stock outperform, and 37 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Group 1 Automotive a green thumbs-up, and six 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 $71.89.

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Group 1 Automotive, Inc. Stock Quote
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