Group 1 Automotive (NYSE:GPI) Releases Quarterly Earnings Results, Misses Estimates By $0.14 EPS

Group 1 Automotive (NYSE:GPI) posted its quarterly earnings results on Wednesday. The company reported $9.36 earnings per share for the quarter, missing the consensus estimate of $9.50 by ($0.14), FiscalAI reports. The company had revenue of $5.40 billion during the quarter, compared to analysts’ expectations of $5.58 billion. Group 1 Automotive had a return on equity of 15.66% and a net margin of 1.31%. The business’s quarterly revenue was down 6.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $10.45 EPS.

Here are the key takeaways from Group 1 Automotive’s conference call:

• Q3 results reflected a challenging market: Revenue was $5.4 billion, adjusted net income was $112 million, and adjusted diluted EPS was $9.36. U.S. new-vehicle same-store sales fell 4.6%, while new-vehicle gross profit per unit declined sequentially to $3,084.
• Aftersales remained a key stabilizer. U.S. same-store customer-pay revenue rose about 3%, repair-order count increased more than 4%, and technician productivity improved 7.2%, supported by affordability initiatives, service financing, and the OneCare maintenance plan.
• The Hennessy acquisition expanded Group 1’s premium-market footprint. The recently closed deal adds 10 dealerships, approximately $1.7 billion in annualized revenue, 500 service bays, and a portfolio that is about 75% luxury; management expects the acquisition and planned dispositions to lift adjusted EBITDA margin by roughly 30 basis points.
• U.K. operations showed improved momentum: Same-store new-vehicle sales increased 8%, new-vehicle gross profit per unit rose 4%, used-vehicle gross profit per unit grew 14%, and parts-and-service revenue increased 7% in local currency.
• Leverage and weak U.S. used-vehicle volumes remain concerns. U.S. used-vehicle same-store sales declined 10%, the pro forma rent-adjusted leverage ratio would be about 4 times, and management expects to prioritize debt reduction until leverage returns to approximately 3 times by mid-to-late 2027, delaying share repurchases.

Group 1 Automotive Stock Performance

NYSE:GPI opened at $249.01 on Thursday. Group 1 Automotive has a fifty-two week low of $224.65 and a fifty-two week high of $429.00. The company has a 50 day moving average price of $254.78 and a 200 day moving average price of $308.84. The stock has a market capitalization of $2.97 billion, a P/E ratio of 10.37, a PEG ratio of 1.50 and a beta of 0.92. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.25 and a current ratio of 1.02.

Group 1 Automotive Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were paid a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Tuesday, September 1st. Group 1 Automotive’s payout ratio is 9.16%.

Trending Headlines about Group 1 Automotive

Here are the key news stories impacting Group 1 Automotive this week:

• Positive Sentiment: Management emphasized continued growth opportunities and discussed the company’s operating performance, suggesting that strategic initiatives and dealership operations remain potential long-term catalysts. Group 1 Automotive Earnings Call Highlights Growth Amid Strain
• Positive Sentiment: Conifer Management, L.L.C. reported purchases of 34,529 and 45,000 GPI shares, respectively. Insider buying can signal confidence in the company’s valuation, though the purchases are less significant than the earnings miss for near-term trading. Conifer Management Buys 34,529 Shares Conifer Management Acquires 45,000 Shares
• Neutral Sentiment: Management’s earnings call provided additional context on the quarter, with executives balancing growth initiatives against industry and consumer-demand pressures. Investors will focus on whether these initiatives can stabilize results in coming quarters. Group 1 Automotive Q3 2026 Earnings Call Transcript
• Negative Sentiment: Group 1 Automotive reported third-quarter earnings of $9.36 per share, below the $9.50 consensus estimate and down from $10.45 a year earlier. Revenue declined 6.7% year over year to $5.40 billion, missing estimates of $5.58 billion. Group 1 Automotive Q3 Earnings and Revenues Miss Estimates
• Negative Sentiment: The company’s 1.31% net margin and year-over-year earnings decline highlight ongoing profitability pressure. The stock also remains below its 200-day moving average, potentially adding technical pressure after the disappointing report. Group 1 Automotive Reports Third Quarter 2026 Financial Results

Insiders Place Their Bets

In other news, major shareholder Conifer Management, L.L.C. acquired 20,471 shares of the company’s stock in a transaction on Monday, October 26th. The shares were bought at an average cost of $246.14 per share, with a total value of $5,038,731.94. Following the transaction, the insider owned 2,012,290 shares in the company, valued at approximately $495,305,060.60. This trade represents a 1.03% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last quarter, insiders bought 820,030 shares of company stock worth $211,496,571. 2.40% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

GPI has been the subject of several analyst reports. Seaport Research Partners set a $420.00 target price on shares of Group 1 Automotive in a report on Monday, August 3rd. KeyCorp set a $425.00 target price on Group 1 Automotive in a research report on Wednesday, October 7th. UBS Group lowered their price target on Group 1 Automotive from $330.00 to $271.00 and set a “neutral” rating for the company in a report on Wednesday, October 7th. Zacks Research cut shares of Group 1 Automotive from a “hold” rating to a “strong sell” rating in a report on Monday, August 10th. Finally, Morgan Stanley downgraded shares of Group 1 Automotive from an “equal weight” rating to an “underweight” rating and dropped their target price for the stock from $300.00 to $232.00 in a research report on Monday, October 5th. Five research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Group 1 Automotive has a consensus rating of “Hold” and an average target price of $341.67.

About Group 1 Automotive

Group 1 Automotive, Inc is an international automotive retailer headquartered in Houston, Texas. The company operates dealerships that sell new and used automobiles and light trucks from a broad range of manufacturers.

In addition to vehicle sales, Group 1 Automotive provides automotive financing and insurance products, vehicle maintenance and repair, collision services, replacement parts, and other related services. Its dealerships also market vehicles through digital retailing platforms.

Founded in 1997, Group 1 Automotive serves customers through a network of dealerships and automotive service locations in the United States, the United Kingdom, and Brazil.