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Penske Automotive (PAG) Q1 Earnings in Line, Revenues Beat
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Penske Automotive Group, Inc. (PAG - Free Report) recorded earnings of 97 cents per share in the first quarter of 2017, on par with the Zacks Consensus Estimate.
Net income rose 3.5% to $83 million in the quarter from $80.2 million a year ago. Income from continuing operations increased 4.2% from $79.3 million a year ago to $83.2 million.
Revenues rose 5.3% to $5.1 billion, surpassing the Zacks Consensus Estimate of $4.8 billion. Excluding foreign exchange, revenues increased 11.3%, driven by the 11.6% rise in total retail automotive sales to 124,472 units.The increase in automotive sales was driven by the strength in the company's U.K. operations and acquisitions.
Same-store retail revenues declined 2.2% to $4.4 billion.
Gross profit increased 7% to $774.3 million from $723.8 million in first-quarter 2016. Operating income grew 4.2% to $150.2 million from $144.1 million in the year-ago quarter.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
The company operates under three reportable segments – Retail Automotive, Retail Commercial Trucks and Commercial Vehicles Australia/Power Systems and Other.
Revenues from Retail Automotive inched up to $4.8 billion from the year-ago figure of $4.5 billion.
Revenues from Retail Commercial Trucks increased to $211.7 million from $206.7 million recorded in the year-ago quarter.
Revenues from Commercial Vehicles Australia/Power Systems and Other increased to $113 million from $103 million in the year-ago quarter.
Financial Position
Penske Automotive had cash and cash equivalents of $72.2 million as of Mar 31, 2017, up from $45.6 million as of Mar 31, 2016. Long-term debt was $2 billion as of March 31, 2017, up from $1.33 billion as of Mar 31, 2016.
Acquisition Update
During the last three months, the company completed acquisitions that are estimated to generate roughly $900 million in annualized revenue.
The acquisitions include Jaguar and Land Rover dealershipsin Paramus, NJ, U.S.-based CarSense and U.K.-based CarShop.
In Apr 2017, the company completed the acquisition of Schumacher European, Ltd., a Mercedes-Benz and Sprinter dealership with 67 service bays located in Phoenix, AZ. The acquisition is expected to add roughly $250 million in annualized revenue.
Price Performance
In the last one year, Penske Automotive’s share price increased 23.6% while the Zacks categorized Retail/Wholesale Auto/Truck industry rallied 12.3%.
Zacks Rank & Key Picks
Penske Automotive currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the auto space include Lithia Motors Inc. (LAD - Free Report) , BorgWarner Inc. (BWA - Free Report) and Cummins Inc. (CMI - Free Report) each with a Zacks Rank #2 (Buy).
The expected long-term growth rate for Lithia, BorgWarner and Cummins is 12.81%, 8.60% and 9.84%, respectively.
Sell These Stocks.
Now. Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>
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Penske Automotive (PAG) Q1 Earnings in Line, Revenues Beat
Penske Automotive Group, Inc. (PAG - Free Report) recorded earnings of 97 cents per share in the first quarter of 2017, on par with the Zacks Consensus Estimate.
Net income rose 3.5% to $83 million in the quarter from $80.2 million a year ago. Income from continuing operations increased 4.2% from $79.3 million a year ago to $83.2 million.
Revenues rose 5.3% to $5.1 billion, surpassing the Zacks Consensus Estimate of $4.8 billion. Excluding foreign exchange, revenues increased 11.3%, driven by the 11.6% rise in total retail automotive sales to 124,472 units.The increase in automotive sales was driven by the strength in the company's U.K. operations and acquisitions.
Same-store retail revenues declined 2.2% to $4.4 billion.
Gross profit increased 7% to $774.3 million from $723.8 million in first-quarter 2016. Operating income grew 4.2% to $150.2 million from $144.1 million in the year-ago quarter.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise | Penske Automotive Group, Inc. Quote
Segment Performance
The company operates under three reportable segments – Retail Automotive, Retail Commercial Trucks and Commercial Vehicles Australia/Power Systems and Other.
Revenues from Retail Automotive inched up to $4.8 billion from the year-ago figure of $4.5 billion.
Revenues from Retail Commercial Trucks increased to $211.7 million from $206.7 million recorded in the year-ago quarter.
Revenues from Commercial Vehicles Australia/Power Systems and Other increased to $113 million from $103 million in the year-ago quarter.
Financial Position
Penske Automotive had cash and cash equivalents of $72.2 million as of Mar 31, 2017, up from $45.6 million as of Mar 31, 2016. Long-term debt was $2 billion as of March 31, 2017, up from $1.33 billion as of Mar 31, 2016.
Acquisition Update
During the last three months, the company completed acquisitions that are estimated to generate roughly $900 million in annualized revenue.
The acquisitions include Jaguar and Land Rover dealershipsin Paramus, NJ, U.S.-based CarSense and U.K.-based CarShop.
In Apr 2017, the company completed the acquisition of Schumacher European, Ltd., a Mercedes-Benz and Sprinter dealership with 67 service bays located in Phoenix, AZ. The acquisition is expected to add roughly $250 million in annualized revenue.
Price Performance
In the last one year, Penske Automotive’s share price increased 23.6% while the Zacks categorized Retail/Wholesale Auto/Truck industry rallied 12.3%.
Zacks Rank & Key Picks
Penske Automotive currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the auto space include Lithia Motors Inc. (LAD - Free Report) , BorgWarner Inc. (BWA - Free Report) and Cummins Inc. (CMI - Free Report) each with a Zacks Rank #2 (Buy).
The expected long-term growth rate for Lithia, BorgWarner and Cummins is 12.81%, 8.60% and 9.84%, respectively.
Sell These Stocks.
Now. Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>