Earnings Preview: Group 1 Automotive

Group 1 Automotive (NYSE:GPI) is gearing up to announce its quarterly earnings on Tuesday, 2025-10-28. 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 $10.69.

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.

Earnings Track Record

Last quarter the company beat EPS by $1.07, which was followed by a 4.92% increase in the share price the next day.

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

Group 1 Automotive Share Price Analysis

Shares of Group 1 Automotive were trading at $423.96 as of October 24. Over the last 52-week period, shares are up 18.81%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Group 1 Automotive

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Group 1 Automotive.

With 4 analyst ratings, Group 1 Automotive has a consensus rating of Neutral. The average one-year price target is $472.5, indicating a potential 11.45% upside.

Comparing Ratings with Competitors

In this comparison, we explore the analyst ratings and average 1-year price targets of Asbury Automotive Group, CarMax and Valvoline, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Underperform trajectory for Asbury Automotive Group, with an average 1-year price target of $250.4, suggesting a potential 40.94% downside.
• Analysts currently favor an Neutral trajectory for CarMax, with an average 1-year price target of $59.81, suggesting a potential 85.89% downside.
• Analysts currently favor an Outperform trajectory for Valvoline, with an average 1-year price target of $45.6, suggesting a potential 89.24% downside.

Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Asbury Automotive Group, CarMax and Valvoline, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Group 1 Automotive ranks in the middle for consensus rating. It ranks at the top for revenue growth and gross profit, but at the bottom for return on equity among its peers.

Delving into Group 1 Automotive's Background

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: A Financial Overview

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Group 1 Automotive showcased positive performance, achieving a revenue growth rate of 21.45% as of 30 June, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Group 1 Automotive's net margin excels beyond industry benchmarks, reaching 2.46%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Group 1 Automotive's ROE stands out, surpassing industry averages. With an impressive ROE of 4.59%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Group 1 Automotive's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.4% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Group 1 Automotive's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.74.

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.