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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $5.40 bln | $5.58 bln (9 Analysts) |
Q3 Adjusted EPS continuing operations | $9.36 | ||
Q3 EPS continuing operations | $8.59 |
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
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(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.)