GPI - Group 1 Automotive stock revs up on big earnings beat

Group 1 Automotive ( NYSE: GPI ) stock gained sharply in premarket trading on Wednesday after reporting sizable beats on top and bottom lines for Q3.

A 20% jump in revenue to $4.2B and a 27.1% rise in earnings per share to $12.00 came in $170M and  $0.80 above expectations, respectively.

"Our team delivered another record quarter featuring substantial revenue and profit growth,” CEO Earl J. Hesterberg said. “Our capital allocation also continues to fuel our strong performance with acquisitions in both of our operating markets during the quarter, bringing total revenues added to $3.1 billion over the past 18 months, and our share repurchase level is now over 20% of our total outstanding shares over the past 12 months.”

During the quarter, the company acquired four new dealerships that are expected to generate $190M in annual revenues altogether. Since January 2021, the auto group has acquired dealerships with total expected annual revenues of $3.2B.

Shares of Group 1 Automotive ( GPI ) rose 8.23% in premarket trading on Wednesday.

The strong results dovetailed with a positive print from Penske Automotive ( PAG ), which notched a beat on top and bottom lines as well .

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