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Penske (PAG) Q3 Earnings & Revenues Top Estimates, Rise Y/Y
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Penske Automotive Group’s (PAG - Free Report) reported third-quarter 2021 adjusted earnings of $4.46 per share, increasing 54% year over year and surpassing the Zacks Consensus Estimate of $3.53. Higher-than-expected gross profit across all segments resulted in this outperformance.
The auto retailer registered net sales of $6,497 million, outpacing the Zacks Consensus Estimate of $6,462 million. The top-line figure also rose 8.8% from the comparable year-ago period.
The company’s gross profit for the reported quarter increased 21.9% on a year-over-year basis to $1,165.7 million. The operating income also grew 32.9% from the prior-year period to $377.8 million.
For the September-end quarter, same-store retail unit sales decreased 7.6% year over year to 112,487. Within the Retail Automotive segment, same-store new-vehicle revenues edged down 3.1% year over year to $2,252.4 million, while same-store used-vehicle revenues grew 16.3% to $2,249.3 million.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
For the July-September period, revenues in the Retail Automotive segment came in at $5,634.9 million, increasing from $5,258 million in third-quarter 2020. Gross profit of $1,010.9 million compared favorably with $849.7 million reported in the year-ago quarter and topped the consensus mark of $969 million.
Revenues in the Retail Commercial Truck segment increased to $717.3 million from the year-ago level of $590.9 million. Consequently, gross profit for the segment was $115.3 million, up from the year-earlier level of $73.1 million and ahead of the consensus mark of $106 million.
Revenues in the Commercial Vehicles Australia/Power Systems for the reported quarter totaled $145.1 million, up from $122.7 million recorded in the year-ago period. Gross profit came in at $39.6 million, exceeding $33.7 million in third-quarter 2020 and surpassing the Zacks Consensus Estimate of $32.4 million.
Financial Tidbits
For the quarter under review, SG&A costs totaled $757.7 million, up 17.8% 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 $119.2 million as of Sep 30, 2021, up from $49.5 million at 2020 end. The long-term debt amounted to $1,356.7 million, down from $1,602.1 million as of Dec 31, 2020.
The Zacks Rank #3 (Hold) company declared a dividend hike last month. It increased its payout to 46 cents, which will be payable on Dec 1 to shareholders on record as of Nov 10. In the first nine months of 2021, Penske repurchased 2,524,938 shares for $219.8 million, including two million shares bought back in the quarter under review. The company had $71.3 million remaining under the current share-repurchase authorization at the end of third-quarter 2021. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Penske (PAG) Q3 Earnings & Revenues Top Estimates, Rise Y/Y
Penske Automotive Group’s (PAG - Free Report) reported third-quarter 2021 adjusted earnings of $4.46 per share, increasing 54% year over year and surpassing the Zacks Consensus Estimate of $3.53. Higher-than-expected gross profit across all segments resulted in this outperformance.
The auto retailer registered net sales of $6,497 million, outpacing the Zacks Consensus Estimate of $6,462 million. The top-line figure also rose 8.8% from the comparable year-ago period.
The company’s gross profit for the reported quarter increased 21.9% on a year-over-year basis to $1,165.7 million. The operating income also grew 32.9% from the prior-year period to $377.8 million.
For the September-end quarter, same-store retail unit sales decreased 7.6% year over year to 112,487. Within the Retail Automotive segment, same-store new-vehicle revenues edged down 3.1% year over year to $2,252.4 million, while same-store used-vehicle revenues grew 16.3% to $2,249.3 million.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
Penske Automotive Group, Inc. price-consensus-eps-surprise-chart | Penske Automotive Group, Inc. Quote
Segmental Performance
For the July-September period, revenues in the Retail Automotive segment came in at $5,634.9 million, increasing from $5,258 million in third-quarter 2020. Gross profit of $1,010.9 million compared favorably with $849.7 million reported in the year-ago quarter and topped the consensus mark of $969 million.
Revenues in the Retail Commercial Truck segment increased to $717.3 million from the year-ago level of $590.9 million. Consequently, gross profit for the segment was $115.3 million, up from the year-earlier level of $73.1 million and ahead of the consensus mark of $106 million.
Revenues in the Commercial Vehicles Australia/Power Systems for the reported quarter totaled $145.1 million, up from $122.7 million recorded in the year-ago period. Gross profit came in at $39.6 million, exceeding $33.7 million in third-quarter 2020 and surpassing the Zacks Consensus Estimate of $32.4 million.
Financial Tidbits
For the quarter under review, SG&A costs totaled $757.7 million, up 17.8% 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 $119.2 million as of Sep 30, 2021, up from $49.5 million at 2020 end. The long-term debt amounted to $1,356.7 million, down from $1,602.1 million as of Dec 31, 2020.
The Zacks Rank #3 (Hold) company declared a dividend hike last month. It increased its payout to 46 cents, which will be payable on Dec 1 to shareholders on record as of Nov 10. In the first nine months of 2021, Penske repurchased 2,524,938 shares for $219.8 million, including two million shares bought back in the quarter under review. The company had $71.3 million remaining under the current share-repurchase authorization at the end of third-quarter 2021. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.