HOUSTON (AP) — Group 1 Automotive Inc. said Thursday its second-quarter net income rose 16 percent, boosted by the continued surge in consumer demand for cars and trucks.
The Houston-based automotive retailer earned $28.6 million, or $1.20 per share, up from $24.7 million, or $1.03 per share, in the same quarter last year.
Excluding one-time items including insurance deductibles related to a hail storm that damaged about 2,200 vehicles in Oklahoma and a real estate-related gain, the company said it posted adjusted earnings of $1.25 per share for the recent quarter.
Revenue rose 29 percent to $1.9 billion from $1.47 billion.
The results beat Wall Street predictions. Analysts polled by FactSet expected earnings of $1.16 per share on $1.75 billion in revenue.
Retail sales of new vehicles jumped 33 percent to $1.08 billion, as the number of new vehicles sold rose 37 percent. But the company's average new vehicle selling price fell 2.3 percent to $32,824. Meanwhile, retail used vehicle sales grew 29 percent to $456.2 million, as unit sales jumped 28 percent and the average selling price edged up about 1 percent to $20,734.
Parts and service revenue rose 7.9 percent to $220.3 million.
Group 1 shares fell 41 cents to $50.86 in afternoon trading after trading as high as $53.71 earlier in the day. They are closer to the high end of their 52-week range of $33.31 to $59.97. The peak was reached in early April.