Group 1 Automotive Inc (GPI) Reports Record Q3 2023 Earnings
Parts and Service revenues reach all-time high for 10th consecutive quarter, a 10.0% increase over the comparable prior year period
Current quarter diluted earnings per common share from continuing operations of $11.67
Record current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) of $12.07
Group 1 Automotive Inc (NYSE:GPI) released its Q3 2023 earnings report on October 25, 2023, revealing record financial results. The company reported all-time record quarterly total revenues of $4.7 billion and total gross profit of $786.2 million. The record revenues were driven by record new vehicle and parts and service revenues, which increased by 20.2% and 10.0% respectively. Used vehicle retail revenues also saw a 4.8% increase.
Financial Highlights
The company's gross profit of $786.2 million, a 4.5% increase over the comparable prior year period, was led by all-time highs in gross profit for parts and service and F&I, which increased 10.0% and 7.0%, respectively. The net income from continuing operations for the current quarter was $164.1 million, a 16.7% decrease compared to $197.1 million for the prior year quarter. The current quarter diluted earnings per common share from continuing operations was $11.67, a 7.1% decrease compared to $12.57 for the prior year quarter. However, the current quarter adjusted diluted earnings per common share from continuing operations (a non-GAAP measure) was a record of $12.07, a 0.6% increase over the prior year quarter of $12.00.
Company's Performance and Future Plans
Group 1 Automotive Inc (NYSE:GPI) has been successful in integrating new acquisitions into its existing operations, contributing to its success and creating incremental value for its shareholders. The company has acquired dealership operations with total expected annual revenues of approximately $1.0 billion year-to-date. The company also repurchased 246,433 shares at an average price per common share of $261.89, for a total of $64.5 million, excluding excise taxes of $0.6 million during the current quarter.
Key Performance Metrics
The company reported total revenues of $4.7 billion, a 13.0% increase compared to $4.2 billion for the third quarter of 2022. The total gross profit was $786.2 million, a 4.5% increase compared to the prior year quarter. The new vehicle units sold were 45,350, a 15.6% increase compared to the prior year quarter. The used vehicle retail units sold were 50,799, a 4.9% increase compared to the prior year quarter.
Conclusion
The Q3 2023 earnings report shows that Group 1 Automotive Inc (NYSE:GPI) continues to perform well, with record revenues and gross profit. The company's successful integration of new acquisitions and its share repurchase program demonstrate its commitment to creating value for its shareholders.
This article first appeared on GuruFocus.
