Brokerages Anticipate Group 1 Automotive, Inc. (GPI) Will Post Earnings of $1.88 Per Share

Brokerages expect Group 1 Automotive, Inc. (NYSE:GPI) to post $1.88 earnings per share (EPS) for the current fiscal quarter, Zacks reports. Two analysts have provided estimates for Group 1 Automotive’s earnings. The lowest EPS estimate is $1.80 and the highest is $1.95. Group 1 Automotive posted earnings per share of $1.70 during the same quarter last year, which would suggest a positive year over year growth rate of 10.6%. The business is expected to announce its next quarterly earnings report on Thursday, April 25th.

According to Zacks, analysts expect that Group 1 Automotive will report full-year earnings of $9.13 per share for the current year, with EPS estimates ranging from $7.56 to $9.80. For the next year, analysts forecast that the business will post earnings of $9.05 per share, with EPS estimates ranging from $6.49 to $10.00. Zacks’ earnings per share calculations are an average based on a survey of sell-side analysts that cover Group 1 Automotive.

Group 1 Automotive (NYSE:GPI) last released its earnings results on Tuesday, February 5th. The company reported $2.31 earnings per share for the quarter, beating analysts’ consensus estimates of $2.28 by $0.03. The firm had revenue of $2.90 billion during the quarter, compared to the consensus estimate of $2.83 billion. Group 1 Automotive had a return on equity of 15.31% and a net margin of 1.36%. The company’s revenue was down .7% compared to the same quarter last year. During the same period in the prior year, the company posted $2.11 EPS.

Several brokerages recently weighed in on GPI. ValuEngine upgraded Group 1 Automotive from a “sell” rating to a “hold” rating in a research report on Thursday. Goldman Sachs Group upgraded Group 1 Automotive from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $67.00 to $77.00 in a research report on Monday, March 4th. JPMorgan Chase & Co. began coverage on Group 1 Automotive in a research report on Tuesday, February 19th. They set an “overweight” rating and a $77.00 price objective for the company. Morgan Stanley set a $55.00 price objective on Group 1 Automotive and gave the stock a “hold” rating in a research report on Thursday, February 14th. Finally, Seaport Global Securities began coverage on Group 1 Automotive in a research report on Wednesday, February 13th. They set a “buy” rating for the company. They noted that the move was a valuation call. Three investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. The stock has an average rating of “Buy” and an average target price of $73.67.

A number of institutional investors and hedge funds have recently modified their holdings of GPI. Mackenzie Financial Corp acquired a new position in Group 1 Automotive in the 3rd quarter worth about $23,804,000. Norges Bank acquired a new position in Group 1 Automotive in the 4th quarter worth about $14,039,000. Marshall Wace LLP acquired a new position in Group 1 Automotive in the 3rd quarter worth about $14,704,000. Towle & Co. increased its holdings in Group 1 Automotive by 48.3% in the 4th quarter. Towle & Co. now owns 591,517 shares of the company’s stock worth $31,185,000 after purchasing an additional 192,628 shares in the last quarter. Finally, Investment Counselors of Maryland LLC increased its holdings in Group 1 Automotive by 100.8% in the 4th quarter. Investment Counselors of Maryland LLC now owns 371,162 shares of the company’s stock worth $19,568,000 after purchasing an additional 186,312 shares in the last quarter. 99.93% of the stock is owned by institutional investors and hedge funds.

NYSE:GPI opened at $67.73 on Friday. The company has a quick ratio of 0.23, a current ratio of 1.01 and a debt-to-equity ratio of 1.17. Group 1 Automotive has a fifty-two week low of $48.69 and a fifty-two week high of $81.16. The firm has a market cap of $1.20 billion, a PE ratio of 7.60, a P/E/G ratio of 1.78 and a beta of 1.78.

Group 1 Automotive declared that its Board of Directors has initiated a share repurchase program on Thursday, February 21st that permits the company to repurchase $75.00 million in shares. This repurchase authorization permits the company to reacquire up to 6.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

The company also recently announced a quarterly dividend, which was paid on Friday, March 15th. Shareholders of record on Friday, March 1st were issued a $0.26 dividend. The ex-dividend date of this dividend was Thursday, February 28th. This represents a $1.04 dividend on an annualized basis and a yield of 1.54%. Group 1 Automotive’s payout ratio is presently 11.67%.

Group 1 Automotive Company Profile

Group 1 Automotive, Inc, through its subsidiaries, operates in the automotive retail industry. The company sells new and used cars, light trucks, and vehicle parts, as well as service insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. It has operations primarily in the metropolitan areas in Alabama, California, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, Oklahoma, South Carolina, and Texas in the United States; 32 towns in the United Kingdom; and metropolitan markets in the states of Sao Paulo, Parana, Mato Grosso do Sul, and Santa Catarina, Brazil.

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Earnings History and Estimates for Group 1 Automotive (NYSE:GPI)

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