Group 1 Automotive (GPI) Q1 Earnings Miss On Lower Sales
Zacks Investment Research | May 01, 2017 11:50PM ET
Share price of Group 1 Automotive Inc. (NYSE:GPI) declined 8% to $68.95 on Apr 28, after the company reported a weak first-quarter performance. It recorded a 3.8% year-over-year decrease in adjusted earnings per share to $1.53 in first-quarter 2017. The figure also missed the Zacks Consensus Estimate of $1.71. Adjusted net income decreased 11.5% to $32.8 million from $37.1 million in the year-ago quarter.
On a reported basis, Group 1 Automotive recorded a net income of $33.9 million or $1.58 per share. In the prior-year quarter, the company recorded a net income of $34.3 million or $1.47 per share.
Revenues decreased 3.4% year over year to $2.52 billion and missed the Zacks Consensus Estimate of $2.58 billion. The top line was weakened by lower sales in energy price that impacted markets, including Texas, Houston and Oklahoma.
Revenues from new vehicle retail sales fell 5.2% to $1.34 billion due to a 6.1% decrease in sales to 38,290 units. Revenues from retailed used vehicles dropped 4% to $660.9 million on a 3.7% decline in sales to 31,566 units. Revenues from used vehicle wholesale sales increased 2.5% to $104.2 million. Used vehicles’ wholesale volume rose 1.1% to 14,529 units.
From the Parts and Service business, revenues improved 2.9% to $271.2 million. The company’s Finance and Insurance business witnessed a 4.8% fall in revenues to $85.8 million.
Gross profit decreased 1.4% to $383.5 million from $389.1 million in the year-ago quarter. Operating income declined to $80.1 million from $82 million.
Group 1 Automotive, Inc. Price, Consensus and EPS Surprise
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