Group 1 Automotive (NYSE: GPI) reported Q2 EPS of $3.77, $3.09 better than the analyst estimate of $0.68. Revenue for the quarter came in at $2.13 billion versus the consensus estimate of $2.15 billion.

Consolidated Results for Second Quarter 2020 (year-over-year comparable basis)

For ease of comparison, we have included constant currency metrics (a non-GAAP measure) both below (shown in parenthesis) and in the financial tables that follow:

• Total revenue decreased 29.1 percent (-28.4 percent), to $2.1 billion.
• Total gross profit decreased 21.0 percent (-20.4 percent), to $358.8 million.
• New vehicle revenues decreased 32.1 percent (-31.4 percent) on a 37.1 percent decrease in unit sales.
• Retail used vehicle revenues decreased 23.6 percent (-22.9 percent) on 23.2 percent lower unit sales.
• Parts and service gross profit decreased 26.5 percent (-25.9 percent) on revenue decrease of 25.4 percent (-24.7 percent).
• Finance and Insurance (F&I) gross profit per retail unit (PRU) increased 9.1 percent (+9.6 percent), to $1,697.
• Selling, General and Administrative (SG&A) expenses as a percent of gross profit decreased 850.0 basis points, to 66.1 percent. Adjusted SG&A as a percent of gross profit decreased 1,100 basis points, to 62.8 percent.

"Our ability to react quickly to uncertain, dramatically lower levels of business activity resulting from the pandemic was completely due to the hard work and commitment of our employees and I must sincerely thank them for that. Rapid and deep cost cuts, combined with a quicker-than-expected U.S. auto market recovery, enabled us to achieve very strong operating results in the second quarter," said Earl J. Hesterberg, Group 1's President and Chief Executive Officer. "Beginning in late March, we experienced sudden and dramatic shutdowns in all three of our markets. By early April, our U.S. sales and service business had dropped by 50% and we were completely closed in the U.K., except for a small volume of emergency service work. Due to this severe decline in customer traffic, we had no choice but to execute a comprehensive cost reduction plan across our entire company that touched all areas of the business. Our U.S. business recovered steadily in May and June led by our used vehicle and service businesses. We benefited greatly during this time period from the effectiveness of our online vehicle purchasing platform, Acceleride, as online shopping increased in popularity. As business improved, we began to call back some of our furloughed employees and have currently returned to approximately 70% of our Pre-COVID employment levels in both the U.S. and U.K. Our U.S. and U.K. businesses are operating at their highest efficiency levels ever and we expect this to carry forward."

For earnings history and earnings-related data on Group 1 Automotive (GPI) click here.