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Penske (PAG) Beats on Q3 Earnings & Sales, Boosts Buyback
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Penske Automotive Group (PAG - Free Report) reported third-quarter 2022 adjusted earnings of $4.61 per share, increasing 3% year over year from $4.46 and surpassing the Zacks Consensus Estimate of $4.38. Higher-than-expected gross profit in the Retail Automotive and Retail Commercial Truck segments resulted in this outperformance.
The auto retailer registered net sales of $6,920.7 million, which topped the Zacks Consensus Estimate of $6,855 million. The top line rose 7% from the year-ago quarter.
Penske’s gross profit in the reported quarter increased 1.8% on a year-over-year basis to $1,186.9 million. The operating income went down 4% to $362.7 million.
In the reported quarter, same-store retail units declined 9.2% year over year to 103,937. Within the Retail Automotive segment, same-store new-vehicle revenues edged down 1.3% to $2,245.8 million, and same-store used-vehicle revenues fell 7.9% to $2,112.9 million.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
In the reported period, revenues in the Retail Automotive segment came in at $5,757.8 million, increasing 2% from a year ago but missing the consensus mark of $5,902 million. Gross profit of $1,006.9 million declined 0.4% but crossed the consensus mark of $967 million.
Revenues in the Retail Commercial Truck segment increased 42% to $1,019.5 million and exceeded the consensus mark of $812 million. Gross profit in the segment was $139.7 million, rising 21.2% from the year-earlier quarter’s figure and beating the consensus mark of $132 million.
The Commercial Vehicles Australia/Power Systems segment’s revenues in the reported quarter decreased 1.2% to $143.4 million and lagged the consensus mark of $156 million. Gross profit came in at $40.3 million, rising 2% from the 2021 level but missing the Zacks Consensus Estimate of $44.48 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $792.7 million, flaring up 4.6% year over year. Penske had cash and cash equivalents of $92.3 million as of Sep 30, 2022, down from $100.7 million in 2021 end. The long-term debt amounted to $1,561.9 million, up from $1,392 million as of Dec 31, 2021.
In the reported quarter, PAG repurchased 2.8 million shares of common stock for $309.4 million. PAG also increased share repurchase authorization by $250 million. As of Oct 25, 2022, $268.2 million remained available for repurchase under its existing share repurchase authorization.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.7% downward over the past 30 days.
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Penske (PAG) Beats on Q3 Earnings & Sales, Boosts Buyback
Penske Automotive Group (PAG - Free Report) reported third-quarter 2022 adjusted earnings of $4.61 per share, increasing 3% year over year from $4.46 and surpassing the Zacks Consensus Estimate of $4.38. Higher-than-expected gross profit in the Retail Automotive and Retail Commercial Truck segments resulted in this outperformance.
The auto retailer registered net sales of $6,920.7 million, which topped the Zacks Consensus Estimate of $6,855 million. The top line rose 7% from the year-ago quarter.
Penske’s gross profit in the reported quarter increased 1.8% on a year-over-year basis to $1,186.9 million. The operating income went down 4% to $362.7 million.
In the reported quarter, same-store retail units declined 9.2% year over year to 103,937. Within the Retail Automotive segment, same-store new-vehicle revenues edged down 1.3% to $2,245.8 million, and same-store used-vehicle revenues fell 7.9% to $2,112.9 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
In the reported period, revenues in the Retail Automotive segment came in at $5,757.8 million, increasing 2% from a year ago but missing the consensus mark of $5,902 million. Gross profit of $1,006.9 million declined 0.4% but crossed the consensus mark of $967 million.
Revenues in the Retail Commercial Truck segment increased 42% to $1,019.5 million and exceeded the consensus mark of $812 million. Gross profit in the segment was $139.7 million, rising 21.2% from the year-earlier quarter’s figure and beating the consensus mark of $132 million.
The Commercial Vehicles Australia/Power Systems segment’s revenues in the reported quarter decreased 1.2% to $143.4 million and lagged the consensus mark of $156 million. Gross profit came in at $40.3 million, rising 2% from the 2021 level but missing the Zacks Consensus Estimate of $44.48 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $792.7 million, flaring up 4.6% year over year. Penske had cash and cash equivalents of $92.3 million as of Sep 30, 2022, down from $100.7 million in 2021 end. The long-term debt amounted to $1,561.9 million, up from $1,392 million as of Dec 31, 2021.
In the reported quarter, PAG repurchased 2.8 million shares of common stock for $309.4 million. PAG also increased share repurchase authorization by $250 million. As of Oct 25, 2022, $268.2 million remained available for repurchase under its existing share repurchase authorization.
Zacks Rank & Key Picks
PAG currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Genuine Parts Company (GPC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 1% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.7% downward over the past 30 days.