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GPI — Group 1 Automotive News Story

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Group 1 Automotive Q1 revenue falls slightly more than expected

Overview

U.S. auto retailer's Q1 revenue slightly missed analyst expectations, declining 1.8% yr/yr

Adjusted EPS from continuing operations fell yr/yr to $8.66

Company repurchased about 1.7% of outstanding shares in Q1

Outlook

Company says macro environment remains dynamic and challenging due to high interest rates and vehicle prices

Company has initiated cost actions in U.S. and U.K., including staffing and expense reductions

Result Drivers

U.K. PARTS & SERVICE GROWTH - Record U.K. gross profit driven by double-digit same-store parts, service, and F&I growth

U.S. AFTERSALES MARGIN - U.S. aftersales (parts and service) gross margin reached a new quarterly high

COST ACTIONS - Company initiated staffing and discretionary expense reductions in response to challenging macro environment

Company press release: ID:nPn3m5GQPa

Key Details

MetricBeat/MissActualConsensus Estimate
Q1 RevenueSlight Miss*$5.40 bln$5.42 bln (8 Analysts)
Q1 Adjusted EPS continuing operations$8.66
Q1 EPS continuing operations$10.82
*Applies to a deviation of less than 1%; not applicable for per-share numbers. Analyst Coverage The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell" The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy" Wall Street's median 12-month price target for Group 1 Automotive Inc is $425.11, about 21.7% above its April 29 closing price of $349.21 The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com. (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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