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Penske (PAG) Up 11.7% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Penske Automotive (PAG - Free Report) . Shares have added about 11.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Penske due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Penske Automotive Group, Inc. before we dive into how investors and analysts have reacted as of late.
Penske Q2 Earnings Surpass Expectations
Penske reported second-quarter 2025 adjusted earnings of $3.78 per share, which increased 4.7% year over year and beat the Zacks Consensus Estimate of $3.56. Better-than-expected results from the Retail Commercial Truck segment and the Commercial Vehicle Distribution and Other segment contributed to the outperformance. The company registered net sales of $7.66 billion, missing the Zacks Consensus Estimate of $7.87 billion. The top line fell 0.4% from the year-ago quarter's level.
Penske’s gross profit in the reported quarter rose 2.6% on a year-over-year basis to $1.30 billion. The operating income increased 3% to $348.2 million. Foreign currency exchange positively impacted revenues by $136.6 million, net income by $1.6 million and earnings per share (EPS) by 3 cents.
In the reported quarter, same-store retail units declined 9.9% year over year to 99,616. Within the Retail Automotive segment, same-store new-vehicle revenues were down 2.4% to $2.85 billion. Same-store used vehicle revenues decreased 1.3% to $2.14 billion.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment were $6.52 billion, which decreased 1.5% from the year-ago quarter's level and missed our estimate of $6.82 billion. Total new and used vehicle deliveries were down 11.9% year over year to 102,545 units. Gross profit was $1.11 billion, rising 3.1% year over year. The figure was in line with our estimate.
Revenues in the Retail Commercial Truck segment increased 5.7% to $943.6 million and topped our estimate of $904.9 million. Gross profit in the segment was $143.6 million, down from $144.5 million reported in the year-earlier quarter and lagging our estimate of $149.2 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 6.5% to $201.2 million and surpassed our estimate of $173.2 million. Gross profit was $44.2 million, which decreased from $44.6 million reported in the year-ago period and missed our estimate of $46 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $906.3 million, up 2.1% year over year. As of June 30, 2025, Penske had cash and cash equivalents of $155.3 million, up from $72.4 million as of Dec. 31, 2024. The long-term debt amounted to $906.7 million, down from $1.13 billion as of Dec. 31, 2024.
In the second quarter, PAG repurchased 630,044 shares of common stock for $93.3 million. As of June 30, 2025, $295.7 million of stock repurchase authorization remained outstanding. As of June 30, 2025, PAG had around $2.3 billion in liquidity.
Penske hiked its quarterly dividend by 6 cents to $1.32 per share, marking its 19th straight quarterly increase. The dividend will be paid on Sept. 3 to its shareholders on record as of Aug. 15, 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Penske has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Penske has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Penske belongs to the Zacks Automotive - Retail and Whole Sales industry. Another stock from the same industry, Sonic Automotive (SAH - Free Report) , has gained 16.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Sonic Automotive reported revenues of $3.66 billion in the last reported quarter, representing a year-over-year change of +5.9%. EPS of $2.19 for the same period compares with $1.47 a year ago.
Sonic Automotive is expected to post earnings of $1.73 per share for the current quarter, representing a year-over-year change of +37.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +9%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Sonic Automotive. Also, the stock has a VGM Score of A.
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Penske (PAG) Up 11.7% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Penske Automotive (PAG - Free Report) . Shares have added about 11.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Penske due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Penske Automotive Group, Inc. before we dive into how investors and analysts have reacted as of late.
Penske Q2 Earnings Surpass Expectations
Penske reported second-quarter 2025 adjusted earnings of $3.78 per share, which increased 4.7% year over year and beat the Zacks Consensus Estimate of $3.56. Better-than-expected results from the Retail Commercial Truck segment and the Commercial Vehicle Distribution and Other segment contributed to the outperformance. The company registered net sales of $7.66 billion, missing the Zacks Consensus Estimate of $7.87 billion. The top line fell 0.4% from the year-ago quarter's level.
Penske’s gross profit in the reported quarter rose 2.6% on a year-over-year basis to $1.30 billion. The operating income increased 3% to $348.2 million. Foreign currency exchange positively impacted revenues by $136.6 million, net income by $1.6 million and earnings per share (EPS) by 3 cents.
In the reported quarter, same-store retail units declined 9.9% year over year to 99,616. Within the Retail Automotive segment, same-store new-vehicle revenues were down 2.4% to $2.85 billion. Same-store used vehicle revenues decreased 1.3% to $2.14 billion.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment were $6.52 billion, which decreased 1.5% from the year-ago quarter's level and missed our estimate of $6.82 billion. Total new and used vehicle deliveries were down 11.9% year over year to 102,545 units. Gross profit was $1.11 billion, rising 3.1% year over year. The figure was in line with our estimate.
Revenues in the Retail Commercial Truck segment increased 5.7% to $943.6 million and topped our estimate of $904.9 million. Gross profit in the segment was $143.6 million, down from $144.5 million reported in the year-earlier quarter and lagging our estimate of $149.2 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 6.5% to $201.2 million and surpassed our estimate of $173.2 million. Gross profit was $44.2 million, which decreased from $44.6 million reported in the year-ago period and missed our estimate of $46 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $906.3 million, up 2.1% year over year. As of June 30, 2025, Penske had cash and cash equivalents of $155.3 million, up from $72.4 million as of Dec. 31, 2024. The long-term debt amounted to $906.7 million, down from $1.13 billion as of Dec. 31, 2024.
In the second quarter, PAG repurchased 630,044 shares of common stock for $93.3 million. As of June 30, 2025, $295.7 million of stock repurchase authorization remained outstanding. As of June 30, 2025, PAG had around $2.3 billion in liquidity.
Penske hiked its quarterly dividend by 6 cents to $1.32 per share, marking its 19th straight quarterly increase. The dividend will be paid on Sept. 3 to its shareholders on record as of Aug. 15, 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Penske has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Penske has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Penske belongs to the Zacks Automotive - Retail and Whole Sales industry. Another stock from the same industry, Sonic Automotive (SAH - Free Report) , has gained 16.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Sonic Automotive reported revenues of $3.66 billion in the last reported quarter, representing a year-over-year change of +5.9%. EPS of $2.19 for the same period compares with $1.47 a year ago.
Sonic Automotive is expected to post earnings of $1.73 per share for the current quarter, representing a year-over-year change of +37.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +9%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Sonic Automotive. Also, the stock has a VGM Score of A.