Group 1 for cars (New York Stock Exchange: GPIShares of Hyundai Motor Co. jumped to an all-time high on Wednesday as second-quarter results beat Wall Street expectations, with strong new vehicle sales offsetting recent disruptions caused by Hyundai Motor’s power outage that affected dealerships across the country and weather events in Texas and Oklahoma.
With new vehicle revenue hitting a quarterly high of $2.4 billion and parts, service, finance and insurance revenue at a record high of $2.7 billion, the company’s consolidated revenue rose 3% year over year to $4.7 billion, beating Wall Street estimates by $20 million. That contributed to adjusted earnings of $9.80 per share, $0.44 above expectations, though down from the year-ago quarter when cost of sales rose 3.9%.
The company, which operates 206 dealerships in the U.S. and U.K., sold 47,700 new vehicles in the quarter, up 6.5% from a year ago, and sold 49,300 used vehicles, up 5.3%. That translated into $2.36 million (+5.4%) in new vehicle revenue and $1.45 million (+0.2%) in used vehicle revenue.
On the balance sheet, the company improved its cash and cash equivalents position by 12.5% to $64.4 million and increased inventory by 20% to $2.35 billion, contributing to a 16.7% increase in total debt to $2.45 billion.
Highlighting the impact of the CDK power outage, the company expects to recover lost vehicle sales and finance and insurance revenues in the third quarter, and days of inventory supply will return to more normal levels in July.
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