Group 1 Automotive Q3 revenue falls 6.7%, misses estimates

Overview

• US auto retailer's Q3 revenue fell 6.7% yr/yr, missing analysts' expectations

• Adjusted EPS from continuing operations declined yr/yr

• Company acquired 10 Atlanta dealerships, expanding market presence

Outlook

• Company focused on integrating recent acquisitions and creating value from expanded operations

• Group 1 Automotive plans to use proceeds from dealership sales to reduce leverage

• Company expects integration of Hennessy acquisition to expand presence in Atlanta market

Result Drivers

• PORTFOLIO RESTRUCTURING - Co said results reflect ongoing shift toward larger, higher-margin dealerships and sale of stores outside its strategy

• ACQUISITIONS - Co said acquisition of 10 Atlanta dealerships contributed to growth in premium markets

• COST CUTTING - Co said earlier cost reduction measures continued to benefit results, per CEO Daryl Kenningham

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

• Wall Street's median 12-month price target for Group 1 Automotive Inc is $326.50, about 28.4% above its October 27 closing price of $254.20

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Oct 27 - GM to transfer stock listing to Nasdaq

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)