Penske Automotive Group Inc. (PAG - Free Report) registered earnings of $1.10 per share in the third quarter of 2017, surpassing the Zacks Consensus Estimate of $1.07. The bottom line in the prior-year quarter was $1.03.
During the quarter, income from continuing operations rose 7.9% to $94.3 million.
Revenues increased 7.2% year over year to $5.52 billion, thereby beating the Zacks Consensus Estimate of $5.34 billion. Excluding foreign exchange, revenues increased 6.9%, driven by the 9.9% rise in total retail unit sales to 130,257. Same-store retail revenues declined 2.9% to 114,941 units.
Gross profit increased 10.5% to $822.6 million from $744.2 million in third-quarter 2016. Operating income grew 7.6% to $152.2 million from $141.5 million in the year-ago quarter.
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 nudged up to $5.1 billion from $4.8 billion in the year-ago quarter.
Revenues from Retail Commercial Trucks increased to $299.6 million from $266.1 million registered in the year-ago quarter.
Revenues from Commercial Vehicles Australia/Power Systems and Other increased to $139.4 million from $113.8 million in the year-ago quarter.
Financial Position
Penske Automotive had cash and cash equivalents of $37.2 million as of Sep 30, 2017, up from $24 million as of Dec 31, 2016. Long-term debt was $2.2 billion as of Sep 30, 2017, increasing from $1.8 billion as of Dec 31, 2016.
Dividend & Share Repurchase
On Oct 11, the company’s board members approved a dividend of 33 cents per common share, up 3.1% sequentially. The increased dividend will be paid on Dec 1 to shareholders of record on Nov 10.
During the quarter, the company repurchased 252,000 shares at an average price of $39.75 per share. In October 2017, they approved a rise in repurchase authorization to $200 million.
Penske Automotive currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space include PACCAR Inc (PCAR - Free Report) , Fox Factory Holding Corp (FOXF - Free Report) and Daimler AG .
While PACCAR sports a Zacks Rank #1 (Strong Buy), both Fox Factory Holding and Daimler carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
PACCAR, Fox Factory Holding and Daimler have a long-term expected earnings growth rate of 10%, 14.2%, and 2.8%, respectively.
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Penske Automotive Group Inc. (PAG - Free Report) registered earnings of $1.10 per share in the third quarter of 2017, surpassing the Zacks Consensus Estimate of $1.07. The bottom line in the prior-year quarter was $1.03.
During the quarter, income from continuing operations rose 7.9% to $94.3 million.
Revenues increased 7.2% year over year to $5.52 billion, thereby beating the Zacks Consensus Estimate of $5.34 billion. Excluding foreign exchange, revenues increased 6.9%, driven by the 9.9% rise in total retail unit sales to 130,257. Same-store retail revenues declined 2.9% to 114,941 units.
Gross profit increased 10.5% to $822.6 million from $744.2 million in third-quarter 2016. Operating income grew 7.6% to $152.2 million from $141.5 million in the year-ago quarter.
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 nudged up to $5.1 billion from $4.8 billion in the year-ago quarter.
Revenues from Retail Commercial Trucks increased to $299.6 million from $266.1 million registered in the year-ago quarter.
Revenues from Commercial Vehicles Australia/Power Systems and Other increased to $139.4 million from $113.8 million in the year-ago quarter.
Financial Position
Penske Automotive had cash and cash equivalents of $37.2 million as of Sep 30, 2017, up from $24 million as of Dec 31, 2016. Long-term debt was $2.2 billion as of Sep 30, 2017, increasing from $1.8 billion as of Dec 31, 2016.
Dividend & Share Repurchase
On Oct 11, the company’s board members approved a dividend of 33 cents per common share, up 3.1% sequentially. The increased dividend will be paid on Dec 1 to shareholders of record on Nov 10.
During the quarter, the company repurchased 252,000 shares at an average price of $39.75 per share. In October 2017, they approved a rise in repurchase authorization to $200 million.
Penske Automotive currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space include PACCAR Inc (PCAR - Free Report) , Fox Factory Holding Corp (FOXF - Free Report) and Daimler AG .
While PACCAR sports a Zacks Rank #1 (Strong Buy), both Fox Factory Holding and Daimler carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
PACCAR, Fox Factory Holding and Daimler have a long-term expected earnings growth rate of 10%, 14.2%, and 2.8%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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.
Free: See Our Top Stock and 4 Runners Up >>
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