NYSE$GPI

Group 1 Automotive Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a decrease in revenue and earnings due to the impact of COVID-19, which negatively affected all regions starting in early March. The company focused on fulfilling customer needs within government mandates and resizing the business to lower activity levels.

Group 1 Automotive reported a decrease in total revenue by 4.2% to $2.7 billion for the first quarter of 2020. Net income was $29.8 million, with diluted earnings per share at $1.61. The results were impacted by 'shelter in place' mandates related to COVID-19, which significantly affected sales and service operations across all regions.

  • Total revenue decreased by 4.2% to $2.7 billion.
  • Net income was $29.8 million, or $1.61 per diluted share.
  • F&I gross profit per retail unit increased by 6.8% to $1,559.
  • Aggressive cost reduction actions were taken, including employee furloughs and cuts in various cost categories.

Headline financials

Total Revenue

$2.69B

Previous: $2.81B-4.2%
EPS (adj)

$1.66

Previous: $2.06-19.4%
F&I gross profit per retail unit

$1.56K

Previous: $1.46K+6.9%
New retail vehicles sold

35.4K

Previous: 38.9K-9.0%
Average selling price - new

$38K

Previous: $36.4K+4.3%
Average selling price - used

$21.2K

Previous: $21.1K+0.4%
Capital Expenditures

$31.6M

Previous: -$41.7M+175.8%
Free Cash Flow

$12.5M

Previous: -$3.06M+508.1%
Net Income

$29.8M

Previous: $38.6M-22.9%
Operating Income

$69.9M

Previous: $86.8M-19.5%
Gross Profit

$417M

Previous: $432M-3.5%
Cash & Equivalents

$19.2M

Previous: $33.6M-42.9%
Total Assets

$5.44B

Previous: $5.26B+3.4%
Stock-Based Comp

$5.1M

Previous: $6.08M-16.1%

Revenue & EPS history

Group 1 Automotive · Revenue · Quarterly

$2.69B

Q1 2020-4.2%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Group 1 Automotive · $2.69B total across 5 segments · Q1 2020

  • New vehicle sales
    $1.34B-5.1%
  • Used vehicle sales
    $779M-4.9%
  • Parts and service
    $371M+0.4%
  • F&I and other
    $113M-0.8%
  • Wholesale used vehicles
    $86.5M-6.1%

Forward guidance

The Company expects second quarter results to be significantly lower than the prior year due to the potential long-term impact of COVID-19 pandemic. Service is anticipated to recover more quickly than vehicle sales, with both beginning to recover in the late spring and summer months as shelter in place policies continue to be lifted and consumers transition to more normal habits.

Tailwinds

  • Improvements in weekly sales pace in the U.S.
  • Recall of some furloughed workers, with plans to add back 495 positions by June.
  • Anticipation of service recovering more quickly than vehicle sales.
  • Expectation of recovery in the late spring and summer months as shelter in place policies are lifted.
  • Consumers transitioning to more normal habits.

Headwinds

  • Potential long-term impact of COVID-19 pandemic.
  • Second quarter results expected to be significantly lower than the prior year.
  • Shelter in place orders remain in effect across the U.K.
  • Stores are closed except for providing service to essential workers’ vehicles in the U.K.
  • Service in the U.K. does not generate material gross profit.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+4.2%

Avg return

30 days after

53%

35 / 66 earnings

Positive

+15.3%

Q3 2014

Best reaction

-9.4%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%-2.3%-9.7%
Q4 2025-8.9%-12.8%-17.8%
Q3 2025-6.4%-5.3%-4.1%
Q2 2025-1.8%-1.5%+1.5%
Q1 2025+2.0%+2.2%+6.8%
Q4 2024-2.0%-2.3%+0.2%
Q3 2024+2.6%+3.7%+19.9%
Q2 2024+2.3%+7.3%+13.3%
Q1 2024+7.5%+7.2%+10.2%
Q4 2023-4.7%-5.0%-3.6%
Q3 2023+7.1%+6.1%+21.8%
Q2 2023+1.7%+4.2%+4.1%
Q1 2023+1.6%+3.3%+2.5%
Q4 2022+7.0%+7.4%+14.5%
Q3 2022+6.4%+6.2%+17.0%
Q2 2022+4.1%+7.3%+9.7%
Q1 2022+6.9%+7.4%+9.9%
Q4 2021-3.2%+0.6%+6.6%
Q3 2021-0.2%+6.0%+10.8%
Q2 2021+5.3%+2.5%+0.7%
Q1 2021-2.9%+0.4%-5.7%
Q4 2020+4.0%+10.4%+10.4%
Q3 2020-2.7%+5.3%+11.4%
Q2 2020-5.7%-0.4%+3.0%
Q1 2020-7.4%+1.3%+36.3%
Q4 2019-8.1%-6.2%-19.7%
Q3 2019+8.6%+10.0%+8.5%
Q2 2019-1.4%-3.0%-17.5%
Q1 2019+6.4%+4.9%+2.4%
Q4 2018-0.6%-8.2%-1.8%
Q3 2018+4.4%+6.1%+4.5%
Q2 2018+6.0%+7.6%+20.7%
Q1 2018-1.1%-0.1%+5.5%
Q4 2017+5.9%+3.2%+2.3%
Q3 2017+11.3%+11.5%+11.4%
Q2 2017+0.5%-2.0%-8.3%
Q1 2017-9.4%-13.1%-17.6%
Q4 2016+1.0%-1.0%-1.4%
Q3 2016-5.4%-6.2%+10.8%
Q2 2016+5.6%+1.7%-1.8%
Q1 2016+8.4%
Q4 2015-7.5%
Q3 2015-1.8%
Q2 2015+3.3%
Q1 2015-5.5%
Q4 2014+3.3%
Q3 2014+15.3%
Q2 2014-5.5%
Q1 2014+6.2%
Q4 2013+1.0%
Q3 2013-6.2%
Q2 2013+5.6%
Q1 2013+6.9%
Q4 2012-9.1%
Q3 2012-3.0%
Q2 2012+5.1%
Q1 2011+0.4%
Q1 2012+1.2%
Q1 2010-6.7%
Q4 2009-6.7%
Q4 2011-6.7%
Q3 2011+4.6%
Q3 2010+4.6%
Q2 2010-3.8%
Q4 2010-3.8%
Q2 2011-3.8%

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