We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Penske Automotive Group (PAG - Free Report) reported fourth-quarter 2024 adjusted earnings of $3.54 per share, which increased 2.6% year over year and beat the Zacks Consensus Estimate of $3.37. Better-than-expected results from the Retail Automotive segment contributed to the outperformance. The company registered net sales of $7.72 billion, beating the Zacks Consensus Estimate of $7.56 billion. The top line rose 6.2% from the year-ago quarter's level.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Penske’s gross profit in the reported quarter rose 6.1% on a year-over-year basis to $1.26 billion. The operating income expanded 25.6% to $333.8 million. Foreign currency exchange positively impacted revenues by $57 million, net income by $1 million and earnings per share (EPS) by 1 cent.
In the reported quarter, same-store retail units declined 2% year over year to 102,542. Within the Retail Automotive segment, same-store new-vehicle revenues were up 7.2% to $3.16 billion. Same-store used vehicle revenues increased 0.9% to $1.9 billion.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
In the reported period, revenues in the Retail Automotive segment came in at $6.72 billion, which increased 8.8% from the year-ago quarter's level. The Zacks Consensus Estimate was $6.4 billion. Total new and used vehicle deliveries were up 0.1% year over year to 109,425 units. Gross profit of $1.08 billion rose 7.4% year over year and beat the consensus estimate of $1.05 billion.
Revenues in the Retail Commercial Truck segment decreased 14.5% to $774 million and lagged the consensus estimate of $968 million. Gross profit in the segment was $138.1 million, down from $143.2 million reported in the year-earlier quarter and fell short of the consensus mark of $150 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 18.3% to $224 million and surpassed our estimate of $199 million. Gross profit came in at $45.8 million, which increased from $42.5 million reported in the year-ago period but fell shy of the consensus estimate of $46 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $886 million, up 6.1% year over year. As of Dec. 31, 2024, Penske had cash and cash equivalents of $72.4 million, down from $96.4 million as of Dec. 31, 2023. The long-term debt amounted to $1.13 billion, down from $1.42 billion as of Dec. 31, 2023.
During the quarter under discussion, PAG repurchased 0.4 million shares of common stock for $58.7 million. As of Sept. 30, 2024, $156.8 million of stock repurchase authorization remained outstanding.
Penske increased the dividend by 2.5% to $1.22 per share, to be paid out on March 6, 2025, to its shareholders of record as of Feb. 24, 2025. This marked the 17th consecutive quarterly increase in the payout.
Image: Bigstock
Penske Automotive's Q4 Earnings & Revenues Surpass Estimates
Penske Automotive Group (PAG - Free Report) reported fourth-quarter 2024 adjusted earnings of $3.54 per share, which increased 2.6% year over year and beat the Zacks Consensus Estimate of $3.37. Better-than-expected results from the Retail Automotive segment contributed to the outperformance. The company registered net sales of $7.72 billion, beating the Zacks Consensus Estimate of $7.56 billion. The top line rose 6.2% from the year-ago quarter's level.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Penske’s gross profit in the reported quarter rose 6.1% on a year-over-year basis to $1.26 billion. The operating income expanded 25.6% to $333.8 million. Foreign currency exchange positively impacted revenues by $57 million, net income by $1 million and earnings per share (EPS) by 1 cent.
In the reported quarter, same-store retail units declined 2% year over year to 102,542. Within the Retail Automotive segment, same-store new-vehicle revenues were up 7.2% to $3.16 billion. Same-store used vehicle revenues increased 0.9% to $1.9 billion.
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 $6.72 billion, which increased 8.8% from the year-ago quarter's level. The Zacks Consensus Estimate was $6.4 billion. Total new and used vehicle deliveries were up 0.1% year over year to 109,425 units. Gross profit of $1.08 billion rose 7.4% year over year and beat the consensus estimate of $1.05 billion.
Revenues in the Retail Commercial Truck segment decreased 14.5% to $774 million and lagged the consensus estimate of $968 million. Gross profit in the segment was $138.1 million, down from $143.2 million reported in the year-earlier quarter and fell short of the consensus mark of $150 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 18.3% to $224 million and surpassed our estimate of $199 million. Gross profit came in at $45.8 million, which increased from $42.5 million reported in the year-ago period but fell shy of the consensus estimate of $46 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $886 million, up 6.1% year over year. As of Dec. 31, 2024, Penske had cash and cash equivalents of $72.4 million, down from $96.4 million as of Dec. 31, 2023. The long-term debt amounted to $1.13 billion, down from $1.42 billion as of Dec. 31, 2023.
During the quarter under discussion, PAG repurchased 0.4 million shares of common stock for $58.7 million. As of Sept. 30, 2024, $156.8 million of stock repurchase authorization remained outstanding.
Penske increased the dividend by 2.5% to $1.22 per share, to be paid out on March 6, 2025, to its shareholders of record as of Feb. 24, 2025. This marked the 17th consecutive quarterly increase in the payout.
Penske’s Zacks Rank & Key Picks
PAG currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Dana (DAN - Free Report) , Allison Transmission Holdings ALSN and Custom Truck One Source (CTOS - Free Report) . While DAN sports a Zacks Rank #1 (Strong Buy) at present, ALSN and CTOS carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DAN’s 2025 earnings implies 79.17% growth on a year-over-year basis.
The Zacks Consensus Estimate for ALSN’s 2025 earnings implies 12.17% year-over-year growth.
The Zacks Consensus Estimate for CTOS’ 2025 earnings implies 75% year-over-year growth.