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Penske (PAG) TEAM Truck Buyout to Add $150M to Annual Revenues
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Penske Automotive Group, Inc. (PAG - Free Report) recently announced that it has acquired TEAM Truck Centres, a retailer of medium and heavy-duty Freightliner and Western Star commercial trucks. The buyout is expected to generate around $150 million in Penske’s annualized revenues and enhance production scale within the company’s wholly-owned Premier Truck Group (“PTG”) subsidiary.
Ontario-based TEAM, with a long-standing repute, is one of the largest and most-well-respected commercial truck dealerships in Canada. It contributes four full-service dealerships to Premier Truck Group's existing operations in Ontario (Cambridge, London, Sarnia, Windsor), bringing the commercial truck dealership location count to 11 in the country. PAG is confident that the new sites will better equip them to remotely serve trucks through the TEAM Truck Centres mobile product support vehicles.
PTG currently operates 41 North American commercial truck locations in Texas, Oklahoma, Oregon, Tennessee, Georgia, Kansas, Missouri, Utah, Idaho and Ontario, Canada, which contribute to nearly $3 billion in aggregate annual revenues.
Penske is riding high on its strategic acquisitions. The McCoy acquisition, completed in November, is expected to aid the top line of PTG. The Warner Truck Centers buyout has made it the largest dealership group for Freightliner in North America, diversifying business, expanding customer base and capitalizing on the Retail Commercial Trucks segment. The takeover of Kansas City Freightliner, completed during the second quarter of 2021, seeks to add $450 million to Penske’s annualized revenues. In October 2021, Penske acquired the remaining 51% of its Japan-based joint venture of premium luxury automotive brands, which is likely to add $250 million to consolidated annual revenues.
PAG’s shares have gained 41.3% over the past year, outperforming the industry’s 14.8% rise.
AutoNation has an expected earnings growth rate of 2.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5.2% upward in the past 60 days.
AutoNation’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AN pulled off a trailing four-quarter earnings surprise of 39.34%, on average. The stock has also rallied 50.5% over a year.
Asbury has an expected earnings growth rate of 21.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 12.4% upward in the past 60 days.
Asbury’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. The stock has grown 15.7% over a year.
Group 1 has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2.8% upward in the past 60 days.
Group 1’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPI pulled off a trailing four-quarter earnings surprise of 9.75%, on average. The stock has also rallied 16% over a year.
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Penske (PAG) TEAM Truck Buyout to Add $150M to Annual Revenues
Penske Automotive Group, Inc. (PAG - Free Report) recently announced that it has acquired TEAM Truck Centres, a retailer of medium and heavy-duty Freightliner and Western Star commercial trucks. The buyout is expected to generate around $150 million in Penske’s annualized revenues and enhance production scale within the company’s wholly-owned Premier Truck Group (“PTG”) subsidiary.
Ontario-based TEAM, with a long-standing repute, is one of the largest and most-well-respected commercial truck dealerships in Canada. It contributes four full-service dealerships to Premier Truck Group's existing operations in Ontario (Cambridge, London, Sarnia, Windsor), bringing the commercial truck dealership location count to 11 in the country. PAG is confident that the new sites will better equip them to remotely serve trucks through the TEAM Truck Centres mobile product support vehicles.
PTG currently operates 41 North American commercial truck locations in Texas, Oklahoma, Oregon, Tennessee, Georgia, Kansas, Missouri, Utah, Idaho and Ontario, Canada, which contribute to nearly $3 billion in aggregate annual revenues.
Penske is riding high on its strategic acquisitions. The McCoy acquisition, completed in November, is expected to aid the top line of PTG. The Warner Truck Centers buyout has made it the largest dealership group for Freightliner in North America, diversifying business, expanding customer base and capitalizing on the Retail Commercial Trucks segment. The takeover of Kansas City Freightliner, completed during the second quarter of 2021, seeks to add $450 million to Penske’s annualized revenues. In October 2021, Penske acquired the remaining 51% of its Japan-based joint venture of premium luxury automotive brands, which is likely to add $250 million to consolidated annual revenues.
PAG’s shares have gained 41.3% over the past year, outperforming the industry’s 14.8% rise.
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Zacks Rank & Other Key Picks
Currently, PAG has a Zacks Rank #2 (Buy).
Better-ranked players in the retail-wholesale space include AutoNation (AN - Free Report) and Asbury Automotive Group (ABG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive (GPI - Free Report) , carrying a Zacks Rank #2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has an expected earnings growth rate of 2.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5.2% upward in the past 60 days.
AutoNation’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AN pulled off a trailing four-quarter earnings surprise of 39.34%, on average. The stock has also rallied 50.5% over a year.
Asbury has an expected earnings growth rate of 21.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 12.4% upward in the past 60 days.
Asbury’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. The stock has grown 15.7% over a year.
Group 1 has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2.8% upward in the past 60 days.
Group 1’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPI pulled off a trailing four-quarter earnings surprise of 9.75%, on average. The stock has also rallied 16% over a year.