Penske Automotive Group (PAG - Free Report) reported fourth-quarter 2022 adjusted earnings of $4.21 per share, which increased from $4.10 and surpassed the Zacks Consensus Estimate of $4.03. Higher-than-expected revenues in the Retail Automotive and Retail Commercial Truck segments resulted in this outperformance. The auto retailer registered net sales of $7,012 million, which topped the Zacks Consensus Estimate of $6,378 million. The top line rose 11.4% from the year-ago quarter.
Penske’s gross profit in the reported quarter increased 0.3% on a year-over-year basis to $1,183.2 million. The operating income went down 5.8% to $335.5 million.
In the reported quarter, same-store retail units rose 2.3% year over year to 102,906. Within the Retail Automotive segment, same-store new-vehicle revenues were up 12.7% to $2,618.8 million, and same-store used-vehicle revenues fell 8.5% to $1,909.2 million.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment came in at $5,910.4 million, increasing 8% from a year ago and topping the consensus mark of $5,384 million. Gross profit of $1,008.8 million declined from $1019 million recorded in 2022.
Revenues in the Retail Commercial Truck segment increased 39.6% to $960.8 million and exceeded the consensus mark of $826 million. Gross profit in the segment was $138.2 million, rising 16.2% from the year-earlier quarter’s figure.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 5% to $140.6 million and lagged the consensus mark of $143 million. Gross profit came in at $36.2 million, declining from $41.3 million in the year-ago period.
Financial Tidbits
In the quarter under review, SG&A costs totaled $815.5 million, up 3.1% year over year. Penske had cash and cash equivalents of $106.5 million as of Dec 31, 2022, up from $100.7 million in 2021 end. The long-term debt amounted to $1,546.9 million, up from $1,392 million as of Dec 31, 2021. In 2022, PAG repurchased 8.2 million shares of common stock for $886.5 million. The company also hiked its payout by 7% to 61 cents a share.
Zacks Rank & Key Picks
Penske currently carries a Zacks Rank #3 (Hold).
A few top-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 3.57%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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Penske Automotive Group (PAG - Free Report) reported fourth-quarter 2022 adjusted earnings of $4.21 per share, which increased from $4.10 and surpassed the Zacks Consensus Estimate of $4.03. Higher-than-expected revenues in the Retail Automotive and Retail Commercial Truck segments resulted in this outperformance. The auto retailer registered net sales of $7,012 million, which topped the Zacks Consensus Estimate of $6,378 million. The top line rose 11.4% from the year-ago quarter.
Penske’s gross profit in the reported quarter increased 0.3% on a year-over-year basis to $1,183.2 million. The operating income went down 5.8% to $335.5 million.
In the reported quarter, same-store retail units rose 2.3% year over year to 102,906. Within the Retail Automotive segment, same-store new-vehicle revenues were up 12.7% to $2,618.8 million, and same-store used-vehicle revenues fell 8.5% to $1,909.2 million.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment came in at $5,910.4 million, increasing 8% from a year ago and topping the consensus mark of $5,384 million. Gross profit of $1,008.8 million declined from $1019 million recorded in 2022.
Revenues in the Retail Commercial Truck segment increased 39.6% to $960.8 million and exceeded the consensus mark of $826 million. Gross profit in the segment was $138.2 million, rising 16.2% from the year-earlier quarter’s figure.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 5% to $140.6 million and lagged the consensus mark of $143 million. Gross profit came in at $36.2 million, declining from $41.3 million in the year-ago period.
Financial Tidbits
In the quarter under review, SG&A costs totaled $815.5 million, up 3.1% year over year. Penske had cash and cash equivalents of $106.5 million as of Dec 31, 2022, up from $100.7 million in 2021 end. The long-term debt amounted to $1,546.9 million, up from $1,392 million as of Dec 31, 2021. In 2022, PAG repurchased 8.2 million shares of common stock for $886.5 million. The company also hiked its payout by 7% to 61 cents a share.
Zacks Rank & Key Picks
Penske currently carries a Zacks Rank #3 (Hold).
A few top-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 3.57%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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