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Group 1 Automotive, Inc. GPI recently announced the acquisition of Classic Chrysler Dodge Jeep Ram of Denton and Classic Mazda of Denton located within the greater Dallas-Fort Worth metro area of Texas. The company expects the stores to generate annual revenues to the tune of $150 million.
Group 1 currently operates 10 dealerships, representing 10 brands in the Dallas-Fort Worth market and it is thrilled to bolster its presence and reach the fast-growing market with the acquisition of these brands. The company has generated $570 million in revenues on a year-to-date basis. With the new acquisition, its total U.S. dealership count stands at 119.
Once its previously-announced acquisition of Prime Automotive Group is completed in late November this year, its total acquired revenues are expected to reach at least $2.4 billion and dealership count to 220 globally, consisting of 149 U.S. locations.
The company's acquisitions of dealerships and franchises are set to expand and optimize its portfolio and further boost its prospects.
Group 1 reported adjusted earnings per share of $10.31 for second-quarter 2021, marginally beating the Zacks Consensus Estimate of $10.1. The bottom line was significantly higher than the prior-year quarter’s $3.77, marking a whopping increase of 173.6%. The automotive retailer registered net sales of $3,700 million, topping the Zacks Consensus Estimate of $3,342 million. Also, the top-line figure was 73.6% higher than the year-ago quarter’s $2,131.2 million.
Shares of Group 1 have climbed 63.2% over a year, outperforming the industry’s 56.9% rise.
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Group 1 — which shares space with auto retailers like Lithia Motors LAD, AutoNation, Inc. AN and O’Reilly Automotive ORLY, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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OReilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
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