Group 1 Automotive Earnings: Here’s Why Investors Like These Results

Group 1 Automotive Inc. (NYSE:GPI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.53%.

Group 1 Automotive Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 21.6% to $1.52 in the quarter versus EPS of $1.25 in the year-earlier quarter.

Revenue: Rose 23.17% to $2.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Group 1 Automotive Inc. reported adjusted EPS income of $1.52 per share. By that measure, the company beat the mean analyst estimate of $1.41. It beat the average revenue estimate of $2.23 billion.

Quoting Management: “We are delighted to announce Group 1′s second quarter operating results which reflect double-digit revenue increases across all of our business sectors coupled with strong expense leverage, which delivered record earnings for our shareholders,” said Earl J. Hesterberg, Group 1′s president and chief executive officer. “As these record results demonstrate, we are beginning to reap the benefits of the significant process improvements and growth investments we have made since the recession.”

Key Stats (on next page)…

Revenue increased 18.91% from $1.96 billion in the previous quarter. EPS increased 31.03% from $1.16 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.48 to a profit $1.49. For the current year, the average estimate has moved up from a profit of $5.15 to a profit of $5.32 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)