Motorpoint Group (LON:MOTR) Releases Earnings Results

Key Points

• Motorpoint reported quarterly EPS of GBX 5.90 and revenue of £686.7 million.
• Trading strengthened: vehicle volumes rose 7.6%, gross profit increased 12%, and retail metal margin per vehicle climbed to £1,266. Management is also targeting expansion from 21 stores to 30–35, supported by technology and automation.
• Management flagged potential metal-margin pressure from abundant vehicle supply and economic uncertainty, despite October sales rising about 9.7% year over year. Shares rose 4.3% after the results, and the reported average analyst target was GBX 170.

Motorpoint Group (LON:MOTR - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported GBX 5.90 earnings per share (EPS) for the quarter, Digital Look Earnings reports. The company had revenue of £686.70 million during the quarter. Motorpoint Group had a net margin of 0.44% and a return on equity of 22.27%.

Here are the key takeaways from Motorpoint Group's conference call:

• Sales and profitability strengthened: Vehicle volumes rose 7.6% against market growth of 0.6%, while gross profit increased 12% on 6% revenue growth. Retail metal margin per vehicle also rose to £1,266 from £1,063.
• Technology is supporting operating leverage: The company said more pricing and allocation decisions are algorithm-led, and its AI tools are handling more customer follow-up. Management believes the platform can support additional stores without a comparable increase in head-office costs.
• Store expansion is central to long-term growth: Motorpoint aims to grow from 21 stores to 30–35 and has four sites secured subject to planning, with two more in advanced negotiations. Management cited returns above 50% IRR for average new-store cases, though planning approvals can be slow.
• Trading is strong, but margins face pressure: October sales were up around 9.7% year on year and the company said stock supply is healthy. Management also flagged some metal-margin pressure from abundant vehicle supply and ongoing economic uncertainty, with the final quarter especially important.

Motorpoint Group Trading Up 4.3%

MOTR traded up GBX 6 during trading on Wednesday, hitting GBX 146. The company's stock had a trading volume of 307,386 shares, compared to its average volume of 82,498. Motorpoint Group has a twelve month low of GBX 111 and a twelve month high of GBX 158.50. The company has a quick ratio of 0.12, a current ratio of 1.00 and a debt-to-equity ratio of 856.92. The stock's fifty day moving average price is GBX 139.59 and its 200-day moving average price is GBX 131.10. The firm has a market capitalization of £116.26 million, a P/E ratio of 22.12 and a beta of 0.82.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on MOTR shares. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a GBX 170 price objective on shares of Motorpoint Group in a report on Monday, October 12th. Shore Capital Group reiterated a "house stock" rating on shares of Motorpoint Group in a research report on Friday, October 9th. One investment analyst has rated the stock with a Buy rating. According to data from MarketBeat.com, Motorpoint Group presently has an average rating of "Buy" and an average target price of GBX 170.

Motorpoint Group Company Profile

Motorpoint is the UK's leading independent E-commerce led omnichannel vehicle retailer, focused on giving retail and trade customers the easiest, most affordable and seamless way of buying, selling and financing their car whether online, in store or a combination of both. Through its leading B2C platform Motorpoint.co.uk and UK network of 20 sales and collection stores, the Group provides an unrivalled offering in the nearly new and used car market, where consumers can effortlessly browse, buy or finance their next car and collect or have it delivered directly to their homes.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.