9 stories mentioning GPIUpdated 5d ago
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Group 1 Automotive (GPI) reported late Tuesday the pricing of its $625 million of 6.250% senior unsecured notes due 2032 and $625 million of 6.625% senior unsecured notes due 2035.The offering is expected to close on Sept. 22, the company said.The firm said it plans to use the net proceeds to help finance the acquisition of some dealership assets and related real estate from Hennessy Automobile Companies.
Major US franchise auto dealers could face earnings pressure next year if a downside scenario plays out amid a "relatively muted" growth backdrop, UBS Securities said Monday.The downside scenario is based on the brokerage's recent discussions with investors. It includes, among other things, expectations for new and used unit growth to be flat into 2027, compared with consensus views of a gain of 3% and 4%, respectively, for the group in UBS's coverage.Other key input includes parts and service growth outlook of 2% next year versus the consensus for an increase of 5% for the group, according to UBS. The analysis covers AutoNation (AN), Sonic Automotive (SAH), Asbury Automotive Group (ABG), Lithia Motors (LAD), and Group 1 Automotive (GPI).Using these assumptions, UBS sees potential downside to 2027 consensus earnings per share views between 6% and 10% for the group, if the downside scenario were to play out, the brokerage said in a note to clients."Consensus has units higher in both new and used for the group in 2027 in what some expect to be a relatively muted growth environment," UBS analysts Robert Saltzman and Joseph Spak said, adding that parts and service growth could also slow from mid-single-digit levels after "significant warranty tailwinds" in recent years.Same-store new and used vehicle sales have underperformed US light vehicle and used retail sales by about 3% each over the past few quarters, according to the note.The structural durability of backend operations like parts and service, as well as financing and insurance remains underappreciated, though dealers will need improving unit sales and stronger service growth to boost investor confidence, UBS said."Given where multiples are currently trading after the (nearly) 2 weeks post-EPS sell-off, we believe a lot of this pessimism is currently priced in," Saltzman and Spak wrote. "We acknowledge there are a variety of ways to offset these potential headwinds, including (selling, general, and administrative) cost improvements, accretive M&A, (and) share repurchases to support EPS growth."UBS expects AutoNation to be the least affected by the scenario, while Sonic Automotive appears the most vulnerable."We continue to prefer idiosyncratic stories tied to growth and strong buybacks to support EPS in the current operating environment," the brokerage said.Price: $207.07, Change: $-2.35, Percent Change: -1.12%
Group 1 Automotive (GPI) has an average rating of overweight and mean price target of $371.91, according to analysts polled by FactSet.
Group 1 Automotive (GPI) has an average rating of overweight and mean price target of $425.91, according to analysts polled by FactSet.Price: $307.66, Change: $+4.69, Percent Change: +1.55%
Group 1 Automotive (GPI) has an average rating of overweight and mean price target of $432.09, according to analysts polled by FactSet.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target by $10 to $375, based on a 2027 P/E of 7.9x, a slight premium to GPI's 10-year average forward P/E of 7.7x. We lower our adjusted EPS estimates to $41.50 from $44.40 for '26 and to $47.70 from $48.40 for '27. After an uncharacteristically weak earnings release, we are maintaining a Hold on shares of GPI. Heading into the release, GPI's quarterly earnings had beat more than 90% of the time over the past eight years, but a sizeable Q1 miss on disappointing sales cause us to remain at a Hold. However, one silver lining was an improvement in the performance of its U.K. operations. On the positive side, GPI continues to aggressively return cash to shareholders through both dividends and buybacks, retiring 1.7% of total shares outstanding in Q1. The fundamental backdrop remains difficult for auto dealerships, and this quarter marked three straight bottom-line misses for GPI, which had previously held one of the best earnings track records in auto retail.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Group 1 Automotive (GPI) posted Q1 adjusted EPS of $8.66 vs. $10.17 (-15%), short of the $8.82 consensus. Revenue declined 1.8% to $5.41B ($10M short of consensus) and gross margin was flat at 16.2% (in line with consensus). The company's new vehicle retail units sold declined by 6.6%, while used vehicle retail units fell 4.4%. The results reflect headwinds facing auto retailers, including elevated interest rates, high vehicle prices, and weakened consumer affordability that have pressured both unit sales and margins. GPI's U.K. operations provided a bright spot with record quarterly gross profits of $230.6M (+6.3% Y/Y). In Q1, GPI repurchased 205K shares at an average price of $353.08/share, representing 1.7% of its outstanding share count at the beginning of 2026. In our view, this was a weak release, as GPI's top and bottom lines fell short of expectations. The quarter marks three straight bottom line misses for a company that had previously held one of the best earnings track records in auto retail.
Group 1 Automotive (GPI) has an average rating of Buy and mean price target of $429.10, according to analysts polled by FactSet.Price: $331.89, Change: $-6.25, Percent Change: -1.85%
The automotive dealership industry is expected to see a weaker Q1 performance due to weather disruptions and softer vehicle sales, BofA Securities said in a note on Monday.The firm said Q1 earnings per share estimates for Asbury Automotive (ABG), AutoNation (AN), Group 1 Automotive (GPI), Penske Automotive (PAG), Sonic Automotive (SAH), and Lithia Motors (LAD) have been reduced by an average of 13%. This mainly reflects weather disruptions in late January and February, which affected both vehicle sales and parts and service.Same-store new unit sales are now expected to decline by 5.4% on average, also due to tough comparisons from pre-buying ahead of tariffs implemented at the end of March 2025, BofA added.For Q2, same-store new unit sales are projected to decline by 1.8% on average, again reflecting difficult comparisons from April of last year due to pre-buying before tariff-related price increases. Key risks to recovery include lower consumer confidence linked to the Iran War and higher gas prices, which historically affect US auto sales.The firm added that AutoNation remains a top pick heading into earnings, as its store footprint was less affected by weather disruptions. There is also potential upside to EPS from share buybacks, which may offset higher selling, general, and administrative expenses.BofA lowered price targets of Asbury Automotive to $238 from $255, Group 1 Automotive to $390 from $430, Lithia Motors to $320 from $335, and Penske Automotive to $185 from $200.Price: $197.68, Change: $-2.85, Percent Change: -1.42%
