GPI 4Q Adjust EPS Slightly Ahead Of Consensus, J.P. Morgan Reports

Group 1 Automotive, Inc. (NYSE: GPI) reported 4Q adjusted EPS of $0.64, slightly ahead of JPMe ($0.62) and Bloomberg consensus ($0.61), J.P. Morgan reports.

“Stronger-than-expected revenues ($1.44B vs. JPMe of $1.25B) were partially offset by lower gross margins (15.1% vs. JPMe of 16.6%) and higher SG&A,” J.P. Morgan writes.

“SG&A as a percent of gross profit was 78.7% in 4Q vs. 77.5% per JPMe. Expect a neutral reaction to these results.

“Overall gross margin at 15.1% was weaker than our expectations (16.6%) across the board: new vehicle gross margin of 5.6% (JPMe 6.2%), used retail vehicle gross margin of 8.2% (JPMe 9.3%), and Parts and Service gross margin of 53.1% (JPMe 53.6%).”

Group 1 Automotive closed Wednesday at $41.08.