DETROIT (Reuters) -- Car dealership Group 1 Automotive Inc. on Tuesday posted a 15 percent rise in second-quarter earnings, buoyed by higher revenues and improved profitability.
The Houston company said earnings rose to $18.1 million, from $15.7 million a year earlier.
Excluding compensation and other costs associated with the company's chief executive officer transition, the company earned 79 cents per share, higher than Wall Street expectations of 72 cents per share.
Revenue rose to $1.57 billion from $1.31 billion a year ago. On a same-store basis, revenue grew 3.9 percent.
"We delivered solid same-store growth in revenues and profitability, and reduced our new vehicle inventories to 62 days' supply, 16 days lower than the same time last year," Group 1's President and Chief Executive Officer Earl Hesterberg, who took over in April, said in a statement.
The company cut its full-year outlook slightly, to $2.95 to $3.02 per share, from a previous range of $2.95 to $3.05 per share, as the company expects industry sales to cool from the torrid pace set in June amid big employee pricing discounts from automakers.
Group 1 is fifth on the Automotive News ranking of top dealer groups in the United States in 2004 with 184,307 total vehicles sold.