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HOUSTON - Group 1 Automotive (NYSE:GPI) reported record second quarter results on Wednesday, with adjusted earnings of $11.52 per share, significantly exceeding analyst expectations of $10.47. The automotive retailer posted quarterly revenues of $5.7 billion, surpassing the consensus estimate of $5.62 billion.
The company achieved record quarterly revenues and gross profit, with total revenues increasing 21.4% YoY to $5.7 billion and gross profit rising 22.1% to $935.8 million. Adjusted earnings per share jumped 17.5% compared to the same quarter last year.
Parts and service was a standout performer, with gross profit increasing 27.1% to $402.8 million. On a same store basis, parts and service gross profit rose 14.0%, with customer pay revenue growth exceeding 13.6% in both the U.S. and U.K. markets.
"We were pleased with our growth in the second quarter. Same store revenues increased 7.1%. Parts and service was a bright spot in both markets, driven by double digit same store growth in customer pay and a tailwind from warranty," said Daryl Kenningham, Group 1’s President and Chief Executive Officer.
New vehicle retail unit sales increased 17.0% to 55,763 units, while used vehicle retail unit sales grew 22.3% to 60,240 units. The company’s finance and insurance revenues rose 18.8% to $237.8 million.
During the quarter, Group 1 acquired three dealerships in the U.S., expected to generate approximately $330 million in annual revenues. The company also continued its share repurchase program, buying back 114,918 shares at an average price of $387.39 per share, for a total of $44.5 million.
While the U.K. market remains challenging with industry volume and margin pressures, the company expects positive momentum in the second half of the year. Management noted they will continue pursuing balanced growth while executing opportunistic share repurchases and reviewing underperforming stores.
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