The chart below shows how GPI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GPI sees a -1.74% change in stock price 10 days leading up to the earnings, and a +5.97% change 10 days following the report. On the earnings day itself, the stock moves by +2.02%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q4 2024 Financial Performance: Adjusted net income for Q4 2024 reached $133.9 million, with adjusted diluted earnings per share of $10.02, reflecting strong financial performance.
Record Quarterly Revenues: Total revenues for Q4 2024 were $5.5 billion, marking an all-time quarterly record, driven by new vehicle sales of $2.9 billion and parts and service revenues of $680 million.
Vehicle Sales Increase: New vehicle units sold increased by 14% on a reported basis, demonstrating robust demand and operational effectiveness in the U.S. market.
Record Parts and Service Growth: Parts and service revenues achieved a record growth of nearly 9% in same-store sales, with customer pay same-store growth exceeding 8%, indicating strong aftersales performance.
Share Repurchase and Dividends: In 2024, the company repurchased approximately 518,000 shares, reducing the share count by 3.8%, while also distributing $25.5 million in dividends to shareholders, reflecting a commitment to returning capital.
Negative
Q4 2024 Adjusted Net Income: Adjusted net income for Q4 2024 was $133.9 million, which included $33 million in impairment charges, indicating a significant negative impact on profitability.
Used Vehicle Sales Decline: Same store retail used vehicle units sold in the UK decreased by 2% year over year, reflecting a decline in sales performance in a challenging market.
Increased Cost Pressures: UK same store adjusted SG&A as a percentage of gross profit worsened sequentially by 760 basis points, highlighting increased cost pressures during the quarter.
BEV Market Challenges: The UK market fell short of the 2024 mandated goal of 22% battery electric vehicle (BEV) mix, indicating ongoing challenges in meeting regulatory requirements and potential future sales impacts.
Operational Disruptions Impact: The integration of the Inchcape business resulted in significant operational disruptions, negatively affecting performance and productivity during the transition period.
Earnings call transcript: Group 1 Automotive beats Q4 2024 forecasts
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