Penske Automotive Group (PAG - Free Report) reported fourth-quarter 2021 adjusted earnings of $4.10 per share, increasing 65% year over year and surpassing the Zacks Consensus Estimate of $3.67. Higher-than-expected gross profit in the Retail Commercial Truck and Commercial Vehicles Australia/Power Systems segments resulted in this outperformance.
The auto retailer registered net sales of $6,296.1 million, outpacing the Zacks Consensus Estimate of $6,227.5 million. The top line also rose 8.3% from the comparable year-ago period’s levels.
The company’s gross profit in the reported quarter increased 31.3% on a year-over-year basis to $1,179.2 million. The operating income also rose 46.9% from the prior-year quarter’s level to $356.3 million.
For the December-end quarter, same-store retail unit sales declined 9.5% year over year to 97,816. Within the Retail Automotive segment, same-store new-vehicle revenues edged down 8.4% year over year to $2,260.4 million, while same-store used-vehicle revenues rose 21.7% to $2,020.7 million.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment came in at $5,473.9 million, increasing 7.3% from fourth-quarter 2020 levels but missing the consensus mark of $5,656 million. Gross profit of $1,019 million increased 29.4% year over year but missed the consensus mark of $1,028 million.
Revenues in the Retail Commercial Truck segment increased 18.8% to $688.4 million. However, the figure lagged the consensus mark of $713 million. Gross profit in the segment was $118.9 million, up 50.8% from the year-earlier quarter’s figure and beating the consensus mark of $114 million.
The Commercial Vehicles Australia/Power Systems segment’s revenues in the reported quarter totaled $133.8 million, up 1.4% from the year-ago quarter’s levels but lagging the consensus mark of $144 million. Gross profit came in at $41.3 million, rising 27.5% from the 2020 level and surpassing the Zacks Consensus Estimate of $36.7 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $791.1 million, up 26.4% year over year. Penske had cash and cash equivalents of $100.7 million as of Dec 31, 2021, up from $49.5 million at 2020 end. The long-term debt amounted to $1,392 million, down from $1,602.1 million as of Dec 31, 2020.
In 2021, PAG returned more than $436 million to shareholders through share repurchases ($293.5 million) and cash dividends ($142.5 million). As of Feb 8, 2022, nearly $194.3 million remains available to repurchase additional shares under its existing share repurchase authorization.
Zacks Rank & Other Key Picks
Currently, Penske has a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space are Goodyear Tire (GT - Free Report) and Tesla (TSLA - Free Report) , each sporting a Zacks Rank #1(Strong Buy) and Genuine Parts (GPC - Free Report) , carrying a Zacks Rank #2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Goodyear has an expected earnings growth rate of 51.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1.1% upward in the past 60 days.
Goodyear’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GT pulled off a trailing four-quarter earnings surprise of 228.5%, on average. The stock has also rallied 51.8% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 11.5% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward in the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of around 16%, on average. The stock has also rallied 26.8% over a year.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
Penske Automotive Group (PAG - Free Report) reported fourth-quarter 2021 adjusted earnings of $4.10 per share, increasing 65% year over year and surpassing the Zacks Consensus Estimate of $3.67. Higher-than-expected gross profit in the Retail Commercial Truck and Commercial Vehicles Australia/Power Systems segments resulted in this outperformance.
The auto retailer registered net sales of $6,296.1 million, outpacing the Zacks Consensus Estimate of $6,227.5 million. The top line also rose 8.3% from the comparable year-ago period’s levels.
The company’s gross profit in the reported quarter increased 31.3% on a year-over-year basis to $1,179.2 million. The operating income also rose 46.9% from the prior-year quarter’s level to $356.3 million.
For the December-end quarter, same-store retail unit sales declined 9.5% year over year to 97,816. Within the Retail Automotive segment, same-store new-vehicle revenues edged down 8.4% year over year to $2,260.4 million, while same-store used-vehicle revenues rose 21.7% to $2,020.7 million.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment came in at $5,473.9 million, increasing 7.3% from fourth-quarter 2020 levels but missing the consensus mark of $5,656 million. Gross profit of $1,019 million increased 29.4% year over year but missed the consensus mark of $1,028 million.
Revenues in the Retail Commercial Truck segment increased 18.8% to $688.4 million. However, the figure lagged the consensus mark of $713 million. Gross profit in the segment was $118.9 million, up 50.8% from the year-earlier quarter’s figure and beating the consensus mark of $114 million.
The Commercial Vehicles Australia/Power Systems segment’s revenues in the reported quarter totaled $133.8 million, up 1.4% from the year-ago quarter’s levels but lagging the consensus mark of $144 million. Gross profit came in at $41.3 million, rising 27.5% from the 2020 level and surpassing the Zacks Consensus Estimate of $36.7 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $791.1 million, up 26.4% year over year. Penske had cash and cash equivalents of $100.7 million as of Dec 31, 2021, up from $49.5 million at 2020 end. The long-term debt amounted to $1,392 million, down from $1,602.1 million as of Dec 31, 2020.
In 2021, PAG returned more than $436 million to shareholders through share repurchases ($293.5 million) and cash dividends ($142.5 million). As of Feb 8, 2022, nearly $194.3 million remains available to repurchase additional shares under its existing share repurchase authorization.
Zacks Rank & Other Key Picks
Currently, Penske has a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space are Goodyear Tire (GT - Free Report) and Tesla (TSLA - Free Report) , each sporting a Zacks Rank #1(Strong Buy) and Genuine Parts (GPC - Free Report) , carrying a Zacks Rank #2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Goodyear has an expected earnings growth rate of 51.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1.1% upward in the past 60 days.
Goodyear’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GT pulled off a trailing four-quarter earnings surprise of 228.5%, on average. The stock has also rallied 51.8% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 11.5% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward in the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of around 16%, on average. The stock has also rallied 26.8% over a year.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
Get the latest research report on GPC - FREE
Get the latest research report on PAG - FREE
Get the latest research report on GT - FREE
Get the latest research report on TSLA - FREE