NYSE$GPI

Group 1 Automotive Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Group 1 Automotive achieved record earnings per share and demonstrated strong cost leverage, with a rebound in U.K. performance.

Group 1 Automotive reported all-time record quarterly earnings per share, more than tripling from Q3 2019. Net income reached $126.4 million, with a total revenue of $3.0 billion.

  • Record earnings driven by resilient teammates and a responsive management team.
  • Targeted 20% efficiency improvement in sales and service processes.
  • SG&A as a percent of gross profit decreased below 60% for the first time.
  • U.K. business turned in a record performance with year-over-year growth in service and vehicle sales.

Headline financials

Total Revenue

$3.04B

Previous: $3.12B-2.5%
EPS (adj)

$6.97

Previous: $3.02+130.8%
Gross profit per new vehicle

$99.2M

No prior period
Gross profit per used vehicle

$77M

No prior period
F&I gross profit per retail unit

$1.66K

Previous: $1.48K+11.5%
New retail vehicles sold

39.9K

Previous: 44.6K-10.7%
Average selling price - new

$39.6K

Previous: $37K+7.1%
Average selling price - used

$22.6K

Previous: $21.1K+7.4%
Capital Expenditures

-$78.8M

Previous: -$140M+43.5%
Free Cash Flow

$47.6M

Previous: -$102M+146.9%
Net Income

$126M

Previous: $38M+232.6%
Operating Income

$187M

Previous: $83.3M+124.6%
Gross Profit

$512M

Previous: $466M+10.0%
Cash & Equivalents

$66.2M

Previous: $41M+61.5%
Total Assets

$4.98B

Previous: $5.33B-6.5%
Stock-Based Comp

$5.3M

Previous: $4.4M+20.5%

Revenue & EPS history

Group 1 Automotive · Revenue · Quarterly

$3.04B

Q3 2020-2.5%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Group 1 Automotive · $3.04B total across 5 segments · Q3 2020

  • New vehicle sales
    $1.58B-4.3%
  • Used vehicle sales
    $867M-0.3%
  • Parts and service
    $376M-2.1%
  • F&I and other
    $130M+1.6%
  • Wholesale used vehicles
    $86.7M+1.8%

Forward guidance

The company announced a new $200 million share repurchase program and expects to reinstate a quarterly cash dividend following its board meeting in mid-November 2020, payable in mid-December 2020.

Tailwinds

  • New $200 million share repurchase program announced.
  • Purchases may be made based on market conditions and legal requirements.
  • Quarterly cash dividend expected to be reinstated.
  • Dividend payable in mid-December 2020.
  • Continued focus on cost efficiency and strategic initiatives.

Headwinds

  • Future dividends subject to board approval.
  • Share repurchases subject to covenant restrictions.
  • Uncertainty regarding economic and business conditions.
  • Potential impacts of COVID-19 on the business.
  • Risks associated with foreign exchange controls and currency fluctuations.

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 Q3 2020

Historical avgQ3 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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