Group 1 expects Q3 earnings per share to triple

Group 1 Automotive Inc. expects its earnings per share to more than triple to between $6.25 and $6.65 in the third quarter.

The company said in releasing preliminary results that the jump in earnings "represents a continuation of the solid profit performance" it experienced in May and June. The Houston-based dealership group said that new- and used-vehicle gross margins in the U.S. have more than offset lower sales volumes amid inventory constraints.

The preliminary results are subject to change. Group 1 is scheduled to report full third-quarter earnings Oct. 29.

Meanwhile, the company announced a $200 million share repurchase authorization. Group 1 said it also expects to reinstate a quarterly cash dividend after its board meeting in November, with the dividends payable in mid-December.

Shares of Group 1 closed Wednesday's trading up 4.7 percent to $124.21.

Group 1 ranks No. 4 on Automotive News' list of the top 150 dealership groups based in the U.S., with retail sales of 169,136 new vehicles in 2019.