Penske Automotive Group, Inc. (PAG - Free Report) reported fourth-quarter 2020 adjusted earnings of $2.49 per share, increasing a whopping 99.2% year over year and surpassing the Zacks Consensus Estimate of $2.11. Markedly, higher-than-expected revenues and gross profit from the new vehicle retail unit resulted in this outperformance. Revenues and gross profit came in at $2,480.7 million and $215.2 million, beating the Zacks Consensus Estimate of $2,423 million and $187 million, respectively.
The auto retailer registered net sales of $5,812.1 million, outpacing the Zacks Consensus Estimate of $5,719 million. However, the top-line figure inched down 1.2% from the comparable year-ago period.
The company’s gross profit for the reported quarter increased 3.7% on a year-over-year basis to $898.4 million. For the fourth quarter, operating income also jumped 58.7% from the prior-year period to $242.5 million.
For the December-end quarter, same-store retail unit sales slid 8.6% year over year to 107,652. Within the Retail Automotive segment, same-store new vehicle revenues rose 3.5% year on year to $2,471.8 million, while same-store used-vehicle revenues slipped 1.1% to $1,655.3 million.
Segmental Performance
During the October-December period, revenues in the Retail Automotive segment came in at $5,100.7 million, down from $5,162.7 million in fourth-quarter 2019. Nonetheless, gross profit of $787.2 million compared favorably with $755.1 million reported in the year-ago quarter.
In the December-end quarter, revenues in the Retail Commercial Truck segment decreased to $579.4 million from the year-ago level of $599.1 million. Gross profit for the segment was $78.8 million, marginally higher than the year-earlier level of $78.3 million.
Revenues in the Commercial Vehicles Australia/Power Systems and Other for the reported quarter increased 10.4% year over year to $132 million. Gross profit came in at $32.4 million compared with $33.1 million recorded in fourth-quarter 2019.
Financial Tidbits
For the quarter under review, SG&A costs totaled $625.8 million, reflecting a decline of 8.7% year over year. Penske — whose peers include AutoNation (AN - Free Report) , Lithia Motors (LAD - Free Report) and Sonic Automotive (SAH - Free Report) — had cash and cash equivalents of $49.5 million as of Dec 31, 2020, up from $28.1 million in the corresponding period of 2019. Long-term debt amounted to $1,602.1 million, down from $2,257 million as of Dec 31, 2019.
Penske raised quarterly dividend by a penny to 43 cents a share, payable on Mar 1 to shareholders of record as of Feb 10, 2021. In 2020, the company repurchased 1,027,736 shares for $34.4 million. The Zacks Rank #3 (Hold) company has $170.6 million remaining under the current share-repurchase authorization. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Penske Automotive Group, Inc. (PAG - Free Report) reported fourth-quarter 2020 adjusted earnings of $2.49 per share, increasing a whopping 99.2% year over year and surpassing the Zacks Consensus Estimate of $2.11. Markedly, higher-than-expected revenues and gross profit from the new vehicle retail unit resulted in this outperformance. Revenues and gross profit came in at $2,480.7 million and $215.2 million, beating the Zacks Consensus Estimate of $2,423 million and $187 million, respectively.
The auto retailer registered net sales of $5,812.1 million, outpacing the Zacks Consensus Estimate of $5,719 million. However, the top-line figure inched down 1.2% from the comparable year-ago period.
The company’s gross profit for the reported quarter increased 3.7% on a year-over-year basis to $898.4 million. For the fourth quarter, operating income also jumped 58.7% from the prior-year period to $242.5 million.
For the December-end quarter, same-store retail unit sales slid 8.6% year over year to 107,652. Within the Retail Automotive segment, same-store new vehicle revenues rose 3.5% year on year to $2,471.8 million, while same-store used-vehicle revenues slipped 1.1% to $1,655.3 million.
Segmental Performance
During the October-December period, revenues in the Retail Automotive segment came in at $5,100.7 million, down from $5,162.7 million in fourth-quarter 2019. Nonetheless, gross profit of $787.2 million compared favorably with $755.1 million reported in the year-ago quarter.
In the December-end quarter, revenues in the Retail Commercial Truck segment decreased to $579.4 million from the year-ago level of $599.1 million. Gross profit for the segment was $78.8 million, marginally higher than the year-earlier level of $78.3 million.
Revenues in the Commercial Vehicles Australia/Power Systems and Other for the reported quarter increased 10.4% year over year to $132 million. Gross profit came in at $32.4 million compared with $33.1 million recorded in fourth-quarter 2019.
Financial Tidbits
For the quarter under review, SG&A costs totaled $625.8 million, reflecting a decline of 8.7% year over year. Penske — whose peers include AutoNation (AN - Free Report) , Lithia Motors (LAD - Free Report) and Sonic Automotive (SAH - Free Report) — had cash and cash equivalents of $49.5 million as of Dec 31, 2020, up from $28.1 million in the corresponding period of 2019. Long-term debt amounted to $1,602.1 million, down from $2,257 million as of Dec 31, 2019.
Penske raised quarterly dividend by a penny to 43 cents a share, payable on Mar 1 to shareholders of record as of Feb 10, 2021. In 2020, the company repurchased 1,027,736 shares for $34.4 million. The Zacks Rank #3 (Hold) company has $170.6 million remaining under the current share-repurchase authorization. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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