Group 1 Automotive Posts Mixed Q2 Earnings Hit By CDK Outage & Adverse Weather Events
Portfolio Pulse from Shivani Kumaresan
Group 1 Automotive Inc (NYSE:GPI) reported mixed Q2 FY24 earnings with sales growth of 3% year-on-year to $4.696 billion, missing the consensus estimate. New vehicle sales grew, but gross profit and operating income declined. Adjusted EPS beat expectations. The company faced challenges from a CDK Global outage and adverse weather events. GPI repurchased shares and is focused on acquiring Inchcape’s U.K. retail automotive business.
July 24, 2024 | 12:12 pm
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NEUTRAL IMPACT
Group 1 Automotive reported mixed Q2 earnings with sales growth of 3% but missed the consensus estimate. Adjusted EPS beat expectations. The company faced challenges from a CDK Global outage and adverse weather events. GPI repurchased shares and is focused on acquiring Inchcape’s U.K. retail automotive business.
The mixed earnings report, with sales growth but a miss on estimates, along with challenges from a CDK Global outage and adverse weather, creates a neutral short-term outlook. The positive EPS beat and share repurchase are offset by operational challenges.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100