Car retailer UnitedAuto Group, Inc. has said that it expects to exceed current First Call earnings estimates for the first quarter ending March 31, 2002, by at least $0.06 per share, or 20%.
The company indicated that first quarter earnings are being positively impacted by strong same store sales growth in all areas of its business.
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According to First Call, UnitedAuto is expected to earn $0.29 per share for the first quarter. Based on its latest guidance, UAG expects to earn at least $0.35 per share which would be 67% more than the $0.21 per share the Company earned in the first quarter of 2001.
For the year ending December 31, 2002, the company expects to earn at least $1.73 per share, based upon an estimated 41.5 million weighted average shares outstanding versus the 39.0 million share estimate in the company’s previous guidance. The increase in shares is due to the company’s recently completed sale of three million shares.
Strong performance in the first quarter of 2002 coupled with the recent acquisition of the Sytner Group plc in the United Kingdom is expected to offset the dilution resulting from the share offering and the issuance of $300 million senior subordinated debt.
Roger Penske, Chairman, commented, “I am extremely pleased about the performance of the business in the first quarter of 2002. We continue to benefit from our strong brand mix and our geographical diversity. As a result of our recently completed equity and debt transactions, UnitedAuto is well positioned for future growth.”
UnitedAuto operates 123 franchises in the United States and 55 franchises internationally, primarily in the UK.
