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Penske (PAG) Rallies 9.5% Since Q2 Earnings & Revenue Beat
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Penske Automotive Group’s (PAG - Free Report) shares have risen 9.5% since the company released second-quarter 2021 results on Jul 28, before the opening bell. The auto retailer reported adjusted earnings of $4.47 per share, increasing a whopping 698% year over year and surpassing the Zacks Consensus Estimate of $3.99. Markedly, higher-than-expected gross profit across all segments resulted in this outperformance.
The auto retailer registered net sales of $6,987.5 million, outpacing the Zacks Consensus Estimate of $6,494 million. The top-line figure also rose 91.4% from the comparable year-ago period.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
The company’s gross profit for the reported quarter increased 113.9% on a year-over-year basis to $1,182.7 million. Operating income also jumped 464% from the prior-year period to $402.7 million.
For the June-end quarter, same-store retail unit sales increased 81.7% year over year to 130,892. Within the Retail Automotive segment, same-store new vehicle revenues rose 104.9% year on year to $2,797.2 million, while same-store used-vehicle revenues grew 99.4% to $2,295.6 million. In fact, the numbers compared favorably even with the pre-pandemic levels, thanks to robust volumes and vehicle margins, operational efficiency, high demand for class-8 trucks along with record performance at Penske Transportation Solutions. Same-store retail units and revenues edged up 6.1% and 23.4%, respectively, from the second quarter of 2019.
Segmental Performance
For the April-June period, revenues in the Retail Automotive segment came in at $6,197.6 million, increasing from $3,153.5 million in second-quarter 2020. Gross profit of $1,040.4 million compared favorably with $466.3 million reported in the year-ago quarter and topped the consensus mark of $635 million.
For the June-end quarter, revenues in the Retail Commercial Truck segment increased to $625.3 million from the year-ago level of $399.2 million. Consequently, gross profit for the segment was $102.7 million, increasing from the year-earlier level of $60.2 million and beating the consensus mark of $75 million.
Revenues in the Commercial Vehicles Australia/Power Systems and Other for the reported quarter surged 67.3% year over year to $164.6 million. Gross profit came in at $39.6 million, exceeding $26.4 million recorded in second-quarter 2020 and surpassing the Zacks Consensus Estimate of $27.40 million.
Financial Tidbits
For the quarter under review, SG&A costs totaled $749.8 million, up 65.3% 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 $165.2 million as of Jun 30, 2021, up from $49.5 million at 2020-end. Long-term debt amounted to $1,436.3 million, down from $1,602.1 million as of Dec 31, 2020.
The Zacks Rank #1 (Strong Buy) company declared a dividend hike last month. It increased its payout to 45 cents, which will be payable on Sep 1 to shareholders on record as of Aug 10. During first-half 2021, Penske repurchased 495,307 shares for $40.9 million and had $142.5 million remaining under the current share-repurchase authorization at the end of second-quarter 2021. In July, it boosted the share buyback authorization to $250 million. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Penske (PAG) Rallies 9.5% Since Q2 Earnings & Revenue Beat
Penske Automotive Group’s (PAG - Free Report) shares have risen 9.5% since the company released second-quarter 2021 results on Jul 28, before the opening bell. The auto retailer reported adjusted earnings of $4.47 per share, increasing a whopping 698% year over year and surpassing the Zacks Consensus Estimate of $3.99. Markedly, higher-than-expected gross profit across all segments resulted in this outperformance.
The auto retailer registered net sales of $6,987.5 million, outpacing the Zacks Consensus Estimate of $6,494 million. The top-line figure also rose 91.4% from the comparable year-ago period.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
Penske Automotive Group, Inc. price-consensus-eps-surprise-chart | Penske Automotive Group, Inc. Quote
The company’s gross profit for the reported quarter increased 113.9% on a year-over-year basis to $1,182.7 million. Operating income also jumped 464% from the prior-year period to $402.7 million.
For the June-end quarter, same-store retail unit sales increased 81.7% year over year to 130,892. Within the Retail Automotive segment, same-store new vehicle revenues rose 104.9% year on year to $2,797.2 million, while same-store used-vehicle revenues grew 99.4% to $2,295.6 million. In fact, the numbers compared favorably even with the pre-pandemic levels, thanks to robust volumes and vehicle margins, operational efficiency, high demand for class-8 trucks along with record performance at Penske Transportation Solutions. Same-store retail units and revenues edged up 6.1% and 23.4%, respectively, from the second quarter of 2019.
Segmental Performance
For the April-June period, revenues in the Retail Automotive segment came in at $6,197.6 million, increasing from $3,153.5 million in second-quarter 2020. Gross profit of $1,040.4 million compared favorably with $466.3 million reported in the year-ago quarter and topped the consensus mark of $635 million.
For the June-end quarter, revenues in the Retail Commercial Truck segment increased to $625.3 million from the year-ago level of $399.2 million. Consequently, gross profit for the segment was $102.7 million, increasing from the year-earlier level of $60.2 million and beating the consensus mark of $75 million.
Revenues in the Commercial Vehicles Australia/Power Systems and Other for the reported quarter surged 67.3% year over year to $164.6 million. Gross profit came in at $39.6 million, exceeding $26.4 million recorded in second-quarter 2020 and surpassing the Zacks Consensus Estimate of $27.40 million.
Financial Tidbits
For the quarter under review, SG&A costs totaled $749.8 million, up 65.3% 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 $165.2 million as of Jun 30, 2021, up from $49.5 million at 2020-end. Long-term debt amounted to $1,436.3 million, down from $1,602.1 million as of Dec 31, 2020.
The Zacks Rank #1 (Strong Buy) company declared a dividend hike last month. It increased its payout to 45 cents, which will be payable on Sep 1 to shareholders on record as of Aug 10. During first-half 2021, Penske repurchased 495,307 shares for $40.9 million and had $142.5 million remaining under the current share-repurchase authorization at the end of second-quarter 2021. In July, it boosted the share buyback authorization to $250 million. You can see the complete list of today’s Zacks #1 Rank stocks here.