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Group 1 Automotive (GPI) Earnings Beat Estimates, Rise Y/Y – Analyst Blog

Group 1 Automotive


) posted a 54.6% year-on-year boost in practiced gain per
share to $1.67 in a fourth entertain of 2014 that surpassed the
Zacks Consensus Estimate by 36 cents. Net income grew 40.7% to
$40.7 million from $28.9 million in a year-ago quarter.

Group 1 Automotive Inc. – Earnings Surprise |

Revenues increasing 11.4% year over year to $2.54 billion,
beating a Zacks Consensus Estimate of $2.48 billion. The
year-over-year alleviation was driven by clever performances across
all of a company’s businesses. All a geographic markets
delivered poignant improvement, with clever expansion witnessed in
the U.S. and U.K. along with cost reductions in Brazil. This
boosted formula in all 3 countries.

Revenues from new car sales escalated 9.9% to $1.5 billion on
an 8.4% boost in section sales to 42,197 vehicles. Revenues from
retailed used vehicles softened 15.6% to $581.8 million on a 15.1%
increase in section sales to 27,499 vehicles. Revenues from wholesale
used vehicles went adult 6.9% to $94.7 million. Used vehicles’
wholesale volume increasing 7.4% to 13,838 units.

Revenues from a Parts and Service business increasing 9.5% to
$281.4 million. The company’s Finance and Insurance business
witnessed a 21.3% arise in revenues to $95.7 million.

Gross distinction increasing 13.9% to $366 million from $321.3 million in
the year-ago quarter. However, handling income decreased 7.7% to
$56.4 million from $61.1 million in a fourth entertain of 2013.

2014 Performance

Earnings for full-year 2014 increasing 18.3% to $5.87 per share from
$4.96 in 2013 and also surpassed a Zacks Consensus Estimate of
$5.56. The extended profitability was formed on alleviation in
capital structure and rebate in costs.

Revenues for 2014 increasing 11.4% to $9.94 billion, marginally
surpassing a Zacks Consensus Estimate of $9.89 billion.

Segment Details

Revenues in a U.S. business increasing 13.1% to $2.1 billion on
the behind of improved opening in all operations and boost in
sales volume. The shred available a 10.3% boost in new vehicle
sales to 34,020 units and a 16.6% boost in sum used vehicles
volume to 34,402 units.

Revenues in a U.K. business protracted 19.6% to $236 million from
$197.4 million in a year-ago entertain due to poignant growth
across all businesses. Retail new car sales increasing 19.7% to
3,545 units and sum used car sales escalated 13.7% to 4,901

Revenues from a Brazil business decreased 10.4% to $198.5 million
in a quarter. New car sell sales decreased 9.7% to 4,632
units, while sum used car sales forsaken 10.5% to 2,034 units.

Financial Details

Group 1 Automotive’s money and money equivalents surged to $40.9
million as of Dec 31, 2014, from $20.2 million as of Dec 31, 2013.
Total debt amounted to $365.1 million as of Dec 31, 2014, compared
with $287.2 million as of Dec 31, 2013.

Capital Restructuring

In Sep 2014, Group 1 Automotive redeemed all of a 2.25%
Convertible Senior Notes, due in 2036. Further, a company
purchased a remaining $22.55 million of a superb 3.00%
Convertible Senior Notes, due in 2020. The association also released $550
million 5.00% Senior Notes, due in 2022 to account a redemption. The
capital restructuring reduced a share count by around 2.7 million

Share Repurchase

In 2014, Group 1 Automotive repurchased 537,000 shares during an
average cost of $68.51. As of Dec 31, 2014, it had around $99.4
million shares remaining underneath a share repurchase authorization.

Acquisitions Dispositions

During a fourth quarter, Group 1 Automotive acquired 3 BMW/MINI
dealerships in a U.K. The association was also postulated a Sprinter
franchise in Beaumont, TX. Group 1 Automotive expects that these
franchises will beget around $230 million in annual revenues.

During a reported quarter, Group 1 Automotive likely four
franchises – one Fiat authorization in Houston, TX and 3 Renault
franchises in Brazil. These dealerships generated $60 million in
trailing twelve-month revenues.

In 2014, Group 1 Automotive acquired 19 franchises worldwide that
are approaching to beget around $910 million in annual revenues.
The association also likely off 12 franchises that generated trailing
twelve-month revenues of $450 million.

Currently, Group 1 Automotive carries a Zacks Rank #3 (Hold). Other
well-ranked vehicle bonds embody Asbury Automotive Group, Inc.

), AutoNation Inc. (

) and Lithia Motors Inc. (

). While Asbury Automotive sports a Zacks Rank #1 (Strong Buy),
both AutoNation and Lithia Motors lift a Zacks Rank #2 (Buy).

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Article source: http://www.nasdaq.com/article/group-1-automotive-gpi-earnings-beat-estimates-rise-yy-analyst-blog-cm441248

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