Group 1 Automotive Earnings Preview

Group 1 Automotive GPI is gearing up to announce its quarterly earnings on Thursday, 2025-07-24. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Group 1 Automotive will report an earnings per share (EPS) of $10.45.

Anticipation surrounds Group 1 Automotive's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.50, leading to a 0.04% drop in the share price the following trading session.

Here's a look at Group 1 Automotive's past performance and the resulting price change:

Market Performance of Group 1 Automotive's Stock

Shares of Group 1 Automotive were trading at $414.63 as of July 22. Over the last 52-week period, shares are up 24.55%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Group 1 Automotive

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Group 1 Automotive.

Analysts have given Group 1 Automotive a total of 3 ratings, with the consensus rating being Buy. The average one-year price target is $491.67, indicating a potential 18.58% upside.

Peer Ratings Comparison

The following analysis focuses on the analyst ratings and average 1-year price targets of Valvoline, Asbury Automotive Group and Advance Auto Parts, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Valvoline, with an average 1-year price target of $41.6, suggesting a potential 89.97% downside.
• Analysts currently favor an Buy trajectory for Asbury Automotive Group, with an average 1-year price target of $280.0, suggesting a potential 32.47% downside.
• Analysts currently favor an Neutral trajectory for Advance Auto Parts, with an average 1-year price target of $45.67, suggesting a potential 88.99% downside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Valvoline, Asbury Automotive Group and Advance Auto Parts, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Group 1 Automotive ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the bottom compared to its peers.

All You Need to Know About Group 1 Automotive

Group 1 owns and operates 39 collision centers and 260 automotive dealerships in the US and the UK, offering 35 brands of automobiles altogether. Slightly over half of the stores are in the US with locations mostly in metropolitan areas in 17 states in the Northeast, Southeast, Midwest, and California. Texas alone contributed 33.5% of new-vehicle unit volume in 2024 and the UK 22.6%. Texas, Massachusetts, and California combined was 48.5%. Revenue in 2024 totaled $19.9 billion. The August 2024 Inchcape UK deal adds about $2.7 billion of annual revenue and 54 stores. The firm entered the UK in 2007 and has 116 stores and about one-third of its new vehicle unit volume there. Group 1 was founded in 1995 and is based in Houston.

Group 1 Automotive: Delving into Financials

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Group 1 Automotive displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 23.15%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Group 1 Automotive's net margin excels beyond industry benchmarks, reaching 2.33%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.29%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.3%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.76.

To track all earnings releases for Group 1 Automotive visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.