NYSE$GPI

Group 1 Automotive Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Group 1 Automotive achieved record EPS and revenue growth, driven by strong vehicle margins and cost control.

Group 1 Automotive reported record third-quarter results, with EPS increasing by 36.5% and total revenues increasing by 15.4%. The company benefited from strong vehicle margins, improved service volume, and diligent cost control. The company continues to expand its portfolio through acquisitions.

  • Record quarterly EPS of $9.33, a 36.5% increase year-over-year.
  • Total revenues increased 15.4% to $3.5 billion.
  • Gross profit increased 27.6% to $653.2 million.
  • Company remains on track to close the purchase of the Prime Auto Group in November.

Headline financials

Total Revenue

$3.51B

Previous: $3.04B+15.4%
EPS (adj)

$9.62

Previous: $6.97+38.0%
Gross profit per new vehicle

$4.77K

Previous: $99.2M-100.0%
Gross profit per used vehicle

$2.28K

Previous: $77M-100.0%
F&I gross profit per retail unit

$1.89K

Previous: $1.66K+13.9%
New retail vehicles sold

35.1K

Previous: 39.9K-11.9%
Capital Expenditures

-$88.4M

Previous: -$78.8M-12.2%
Free Cash Flow

$83.7M

Previous: $47.6M+75.8%
Net Income

$172M

Previous: $126M+36.2%
Operating Income

$247M

Previous: $187M+31.9%
Gross Profit

$653M

Previous: $512M+27.6%
Cash & Equivalents

$297M

Previous: $66.2M+348.5%
Total Assets

$4.76B

Previous: $4.98B-4.5%
Stock-Based Comp

$5.8M

Previous: $5.3M+9.4%

Revenue & EPS history

Group 1 Automotive · Revenue · Quarterly

$3.51B

Q3 2021+15.4%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Group 1 Automotive · $3.51B total across 5 segments · Q3 2021

  • New vehicle sales
    $1.58B-0.3%
  • Used vehicle sales
    $1.25B+43.9%
  • Parts and service
    $428M+13.8%
  • F&I and other
    $148M+14.1%
  • Wholesale used vehicles
    $109M+26.2%

Forward guidance

Assuming no material change in consumer demand, the dynamic of selling new vehicles almost immediately upon manufacturer delivery should continue throughout the fourth quarter and into 2022. In addition to the recently announced dealership acquisition in the Dallas and Sacramento markets, the company remains on track to close the purchase of the Prime Auto Group in November.

Tailwinds

  • Continued strong vehicle margins.
  • Further improvement in service volume.
  • Diligent cost control.
  • Selling most new vehicles almost immediately upon manufacturer delivery.
  • On track to close the purchase of the Prime Auto Group in November.

Headwinds

  • No material change in consumer demand.
  • General economic and business conditions.
  • The level of manufacturer incentives.
  • The future regulatory environment.
  • Our ability to obtain an inventory of desirable new and used vehicles.

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 2021

Historical avgQ3 2021

+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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