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Penske Automotive (PAG) Q3 Earnings Beat, Revenues Lag Estimates
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Penske Automotive Group, Inc. (PAG - Free Report) recorded adjusted earnings of $1.40 per share in third-quarter 2018, which surpassed the Zacks Consensus Estimate of $1.38. It recorded net earnings of $1.10 per share in the year-ago quarter. The company’s diversified portfolio enabled it to witness this rise.
Net income from continuing operations increased 38% year over year to $130.1 million in the reported quarter from $94.2 million a year ago.
Total revenues rose 2.4% year over year to $5.66 billion, which missed the Zacks Consensus Estimate of $5.86 billion. Same-store retail unit sales decreased 0.2% year over year to 123,799 units. Within the retail automotive segment, new-vehicle revenues declined 5.3% year over year to $2.4 billion while used-vehicle revenues gained 9.3% to $1.8 billion.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
The company’s total gross profit increased 3.6% to $852.6 million from $822.6 million in the prior-year quarter. Operating income grew 7.7% to $163.9 million from $152.2 million.
Segmental Performance
The company operates under three reportable segments namely — Retail Automotive, Retail Commercial Trucks, and Commercial Vehicles Australia/Power Systems and Other.
Revenues from Retail Automotive rose to $5.2 billion from the year-ago figure of $5.1 billion.
Revenues from Retail Commercial Trucks increased to $385.3 million from $300 million in the year-ago quarter.
In the reported quarter, revenues from Commercial Vehicles Australia/Power Systems and Other grew to $124.8 million from $139.4 million a year ago.
Financial Position
Penske Automotive had cash and cash equivalents of $37.6 million as of Sep 30, 2018, marking a decline from $45.7 million recorded as of Dec 31, 2017. Long-term debt was $2 billion at the end of the third quarter, which was almost in line with the year-ago figure.
Share Repurchase
During the nine months ended on Sep 30, 2018, Penske Automotive repurchased 1,252,624 shares for $55.8 million. At the end of third-quarter 2018, the company had roughly $150 million available under its existing share repurchase authorization.
CarMax has an expected long-term growth rate of 3.3%. Over the past six months, shares of the company have moved up 12.4%.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have moved up 12.8%.
Advance Auto has an expected long-term growth rate of 12.3%. Shares of the company have risen 40.3% over the past six months.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Penske Automotive (PAG) Q3 Earnings Beat, Revenues Lag Estimates
Penske Automotive Group, Inc. (PAG - Free Report) recorded adjusted earnings of $1.40 per share in third-quarter 2018, which surpassed the Zacks Consensus Estimate of $1.38. It recorded net earnings of $1.10 per share in the year-ago quarter. The company’s diversified portfolio enabled it to witness this rise.
Net income from continuing operations increased 38% year over year to $130.1 million in the reported quarter from $94.2 million a year ago.
Total revenues rose 2.4% year over year to $5.66 billion, which missed the Zacks Consensus Estimate of $5.86 billion. Same-store retail unit sales decreased 0.2% year over year to 123,799 units. Within the retail automotive segment, new-vehicle revenues declined 5.3% year over year to $2.4 billion while used-vehicle revenues gained 9.3% to $1.8 billion.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise | Penske Automotive Group, Inc. Quote
The company’s total gross profit increased 3.6% to $852.6 million from $822.6 million in the prior-year quarter. Operating income grew 7.7% to $163.9 million from $152.2 million.
Segmental Performance
The company operates under three reportable segments namely — Retail Automotive, Retail Commercial Trucks, and Commercial Vehicles Australia/Power Systems and Other.
Revenues from Retail Automotive rose to $5.2 billion from the year-ago figure of $5.1 billion.
Revenues from Retail Commercial Trucks increased to $385.3 million from $300 million in the year-ago quarter.
In the reported quarter, revenues from Commercial Vehicles Australia/Power Systems and Other grew to $124.8 million from $139.4 million a year ago.
Financial Position
Penske Automotive had cash and cash equivalents of $37.6 million as of Sep 30, 2018, marking a decline from $45.7 million recorded as of Dec 31, 2017. Long-term debt was $2 billion at the end of the third quarter, which was almost in line with the year-ago figure.
Share Repurchase
During the nine months ended on Sep 30, 2018, Penske Automotive repurchased 1,252,624 shares for $55.8 million. At the end of third-quarter 2018, the company had roughly $150 million available under its existing share repurchase authorization.
Zacks Rank and Stocks to Consider
Penske Automotive currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are CarMax, Inc. (KMX - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Advance Auto Parts, Inc. (AAP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CarMax has an expected long-term growth rate of 3.3%. Over the past six months, shares of the company have moved up 12.4%.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have moved up 12.8%.
Advance Auto has an expected long-term growth rate of 12.3%. Shares of the company have risen 40.3% over the past six months.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>