Group 1 Automotive Overcomes Q1 Expectations with Robust UK Performance
Group 1 Automotive Inc. (GPI) has reported impressive financial results for the first quarter of 2024, surpassing analyst expectations and showcasing strong growth in key areas of its business. The company’s adjusted earnings per share reached $9.49, beating the Wall Street estimate of $9.38. Quarterly revenues also exceeded expectations, reaching $4.471 billion compared to the analyst consensus of $4.379 billion, marking an 8.2% year-over-year increase.
Group 1 Automotive’s UK operations played a significant role in the company’s success, with total revenues increasing by 4.7% to $824.8 million. The company noted a rebound in its UK business from the challenges faced in the fourth quarter of 2023. Notably, record quarterly revenues were generated from parts and service, as well as new vehicle sales, while used vehicle sales volumes also experienced a significant increase of over 19% sequentially.
Overall gross profit rose by 2% year-over-year, reaching $742.6 million. During the quarter, Group 1 Automotive successfully acquired and integrated dealership operations with expected annual revenues of approximately $1.0 billion. The company also disposed of six dealerships in Beaumont, Texas, which had generated approximately $260 million in annual revenues.
In terms of financial flexibility, Group 1 Automotive has $89.6 million remaining on its authorized common share repurchase program.
The positive financial results were met with a positive reaction in the stock market, with GPI shares trading 6.6% higher at $298.10 at the time of reporting.
