Group 1 Automotive Earnings Preview: Get Ahead of the Analysts

Group 1 Automotive (NYSE:GPI) will report earnings before markets open on Thursday, July 25th. Group 1 Automotive, Inc., through its subsidiaries, owns and operates automobile dealerships. The Company sells new and used cars and light trucks, provides maintenance and repair services, and sells replacement parts. The Company also arranges related financing, insurance, and extended service contracts. Group 1 operates in Florida, Georgia, Colorado, Oklahoma, New Mexico, and Texas.

Here is your Cheat Sheet to Group 1 Automotive Earnings:

Earnings Expectations: Analysts expect earnings of $1.41 per share on revenues of $2.23 billion. Currently, the company’s P/E ratio stands at 16.53.

Analyst Trends:

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 is a profit of $5.32, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Group 1 Automotive has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 5,654 4,526 5,509 6,080 7,476
Diluted EPS ($) -1.39 1.49 2.16 3.47 4.19

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 1,895.83 1,976.57 1,938.96 1,963.83
Diluted EPS ($) 1.20 1.32 0.70 0.88

Past Performance:
Group 1 Automotive has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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