HOUSTON - Group 1 Automotive (NYSE:GPI) reported third quarter earnings that fell short of analyst expectations, sending shares down 3% in early trading Wednesday.
The auto retailer posted adjusted earnings per share of $9.90, missing the consensus estimate of $10.07. Revenue came in at $5.2 billion, slightly above expectations of $5.1 billion.
Total gross profit rose 8.4% year-over-year to $852.7 million. However, new vehicle gross profit per unit declined 20.5% to $3,407 as inventory levels normalized.
"We continue to grow revenues through acquisitions. During the quarter, we executed strategic U.K. transactions which added 58 dealerships," said CEO Daryl Kenningham. "We were pleased to have set quarterly records for new and used vehicle units sold, while GPUs only declined $161 and $63, sequentially from the second quarter, for new and used vehicles, respectively."
The company noted that global stop sales on certain BMW (ETR:BMWG) and Lexus models, as well as weather events in Texas and the Southeast, impacted sales during the quarter.
Same store new vehicle retail sales were flat year-over-year at $2.2 billion, while used vehicle retail sales declined 6.8% to $1.4 billion.
Group 1 repurchased 85,245 shares during the quarter at an average price of $349.55 per share. The company had $174.8 million remaining on its share repurchase authorization as of September 30.
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