(Adds earnings outlook, details throughout)
DETROIT, Oct 30 (Reuters) - Group 1 Automotive Inc. on Thursday reported stronger third-quarter earnings, boosted by higher sales of new and used vehicles.
Houston-based Group 1 said earnings rose to $21.7 million, or 92 cents per share, from $20.1 million, or 84 cents per share, in the year-earlier quarter. Analysts on average had expected 87 cents per share, according to Reuters Research, a unit of Reuters Group Plc.
Revenues rose to $1.24 billion from $1.20 billion.
Group 1 said it expects a "solid vehicle market", resulting in earnings of $3.05 to $3.15 per share for the year. That compared with analysts' average estimate of $3.13 per share, according to Reuters Research.
Excluding future acquisitions, Group 1 said it expects earnings next year of $3.10 to $3.30 per share. That excludes an anticipated one-time expense of $4.1 million or 17 cents per share from the expected redemption of its bonds next March. Analysts had expected earnings next year of $3.43, according to Reuters Research.
Group 1 said it plans to continue its acquisition strategy, and is targeting to add auto dealerships with total annual revenues of about $1 billion in 2004. Group 1 will seek to expand into new markets, as well as augment its current markets, the company said.