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Group 1 Automotive set to report a big profit beat

Group 1 Automotive Inc. (GPI) provided Thursday an upbeat profit and unit sales outlook for the second quarter, with the owner and operator of auto dealerships citing "strong" vehicle margins in the U.S. and a rebound in the U.S. services business. The company expects earnings per share of between $10.20 and $10.70, up from $3.77 a year ago and well above the current FactSet consensus of $5.45. The company expects new retail unit same-store sales to be up 61% from a year ago but down 1% from the same period in prepandemic 2019, while used retail unit same-store sales are expected to be up 49% from 2020 and 12% above 2019 sales. "The unprecedented supply disruption to new vehicle production largely stemming from the microprocessor shortage has made it very difficult for the financial markets to grasp the impact on our business," said Chief Executive Earl Hesterberg. "Therefore, we are providing some preliminary data on how we are navigating through these challenging times - and I think it is fair to say we are navigating the situation quite well." The company is projected to report second-quarter results on or about July 29. The stock, which is still inactive in premarket trading, has lost 4.3% over the past three months, while the S&P 500 has gained 6.4%.

-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com

 

(END) Dow Jones Newswires

07-08-21 0619ET

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