Group 1 Automotive Inc.
) announced the acquisition of Shawnee Mission Kia dealership in
Overland Park, Kansas as part of its continuous effort to expand
brand offerings across the U.S.
The acquired dealership is expected to generate $65.0 million in
estimated annual revenues. It will complement the company's
existing BMW, MINI and Hyundai dealerships in the Kansas City
In 2012, Group 1 acquired 16 franchises with estimated annual
revenues of $715.0 million. The company also disposed of six
franchises during the year with trailing-12-month revenues of
Houston, Texas-based Group 1 Automotive is one of the largest
automotive retailers in the U.S., which sells new and used cars
and light trucks; arranges vehicle financing, service and
insurance contracts; provides automotive maintenance and repair
services; and sells vehicle parts. The $1.4 billion company owns
and operates 121 automotive dealerships, 157 franchises, and 31
collision centers in the U.S. and the U.K. that offer 31 brands
In the third quarter of 2012, the company posted an impressive
30.7% increase in earnings per share to $1.32 from $1.01 in the
prior year quarter. Earnings per share exceeded the Zacks
Consensus Estimate by a penny.
The company's revenues for the quarter came in at $2.0 billion,
up 25.9% from the year-ago quarter. The growth in revenues was
driven by strong retail new vehicle and used vehicle unit sales.
Revenues from new vehicle sales surged 32.3% to $1.1 billion on a
34.0% increase in unit sales to 34,532 vehicles. Revenues from
retailed used vehicles boosted 22.6% to $462.4 million on a 19.5%
improvement in unit sales to 22,433 vehicles.
Group 1 competes with
Penske Automotive Group Inc.
). Currently, the company retains a Zacks #3 Rank (Hold) for the
short-term (1 to 3 months).
AUTONATION INC (AN): Free Stock Analysis
GROUP 1 AUTO (GPI): Free Stock Analysis
(HYMLF): ETF Research Reports
PENSKE AUTO GRP (PAG): Free Stock Analysis
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