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Penske (PAG) Up 0.7% 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 0.7% 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Penske Q3 Earnings Lag Expectations
Penske reported third-quarter 2025 adjusted earnings of $3.23 per share, which decreased 3.9% year over year and missed the Zacks Consensus Estimate of $3.48. Better-than-expected results from the Retail Automotive segment contributed to the outperformance. The company registered net sales of $7.70 billion, missing the Zacks Consensus Estimate of $7.74 billion. The top line, however, rose 1.4% from the year-ago quarter's level.
Penske’s gross profit in the reported quarter rose 0.5% on a year-over-year basis to $1.25 billion. The operating income decreased 5.9% to $298.7 million. Foreign currency exchange positively impacted revenues by $92.8 million, net income by $700,000 and earnings per share (EPS) by 2 cents.
In the reported quarter, same-store retail units increased 0.7% year over year to 112,438. Within the Retail Automotive segment, same-store new-vehicle revenues were up 3.5% to $2.86 billion. Same-store used vehicle revenues increased 7.5% to $2.20 billion.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment were $6.57 billion, which increased 3.6% from the year-ago quarter's level and topped our estimate of $6.41 billion. Total new and used vehicle deliveries were down 3.5% year over year to 103,517 units. Gross profit was $1.07 billion, up 2.4% year over year. The figure topped our estimate of $1.06 billion.
Revenues in the Retail Commercial Truck segment decreased 13.6% to $918 million and missed our estimate of $1.13 billion. Gross profit in the segment was $136.3 million, down from $157.1 million reported in the year-earlier quarter and lagging our estimate of $183.6 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 10.6% to $206.6 million but missed our estimate of $217.4 million. Gross profit was $46.5 million, which increased from $44.6 million reported in the year-ago period and topped our estimate of $45.1 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $907.5 million, up 2.5% year over year. As of Sept. 30, 2025, Penske had cash and cash equivalents of $80.3 million, up from $72.4 million as of Dec. 31, 2024. The long-term debt amounted to $1.27 billion, up from $1.13 billion as of Dec. 31, 2024.
In the first nine months, PAG repurchased 796,716 shares of common stock for $119 million. As of Sept. 30, 2025, $262.3 million of stock repurchase authorization remained outstanding. As of Sept. 30, 2025, PAG had around $1.9 billion in liquidity.
Penske hiked its quarterly dividend by 6 cents to $1.38 per share, marking its 20th straight quarterly increase. The dividend will be paid on Dec.2 to its shareholders on record as of Nov. 14, 2025.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -5.21% due to these changes.
VGM Scores
Currently, Penske has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Penske has a Zacks Rank #4 (Sell). We expect a below average 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, Group 1 Automotive (GPI - Free Report) , has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Group 1 Automotive reported revenues of $5.78 billion in the last reported quarter, representing a year-over-year change of +10.7%. EPS of $10.45 for the same period compares with $9.90 a year ago.
For the current quarter, Group 1 Automotive is expected to post earnings of $9.40 per share, indicating a change of -6.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.8% over the last 30 days.
Group 1 Automotive has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Penske (PAG) Up 0.7% 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 0.7% 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Penske Q3 Earnings Lag Expectations
Penske reported third-quarter 2025 adjusted earnings of $3.23 per share, which decreased 3.9% year over year and missed the Zacks Consensus Estimate of $3.48. Better-than-expected results from the Retail Automotive segment contributed to the outperformance. The company registered net sales of $7.70 billion, missing the Zacks Consensus Estimate of $7.74 billion. The top line, however, rose 1.4% from the year-ago quarter's level.
Penske’s gross profit in the reported quarter rose 0.5% on a year-over-year basis to $1.25 billion. The operating income decreased 5.9% to $298.7 million. Foreign currency exchange positively impacted revenues by $92.8 million, net income by $700,000 and earnings per share (EPS) by 2 cents.
In the reported quarter, same-store retail units increased 0.7% year over year to 112,438. Within the Retail Automotive segment, same-store new-vehicle revenues were up 3.5% to $2.86 billion. Same-store used vehicle revenues increased 7.5% to $2.20 billion.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment were $6.57 billion, which increased 3.6% from the year-ago quarter's level and topped our estimate of $6.41 billion. Total new and used vehicle deliveries were down 3.5% year over year to 103,517 units. Gross profit was $1.07 billion, up 2.4% year over year. The figure topped our estimate of $1.06 billion.
Revenues in the Retail Commercial Truck segment decreased 13.6% to $918 million and missed our estimate of $1.13 billion. Gross profit in the segment was $136.3 million, down from $157.1 million reported in the year-earlier quarter and lagging our estimate of $183.6 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 10.6% to $206.6 million but missed our estimate of $217.4 million. Gross profit was $46.5 million, which increased from $44.6 million reported in the year-ago period and topped our estimate of $45.1 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $907.5 million, up 2.5% year over year. As of Sept. 30, 2025, Penske had cash and cash equivalents of $80.3 million, up from $72.4 million as of Dec. 31, 2024. The long-term debt amounted to $1.27 billion, up from $1.13 billion as of Dec. 31, 2024.
In the first nine months, PAG repurchased 796,716 shares of common stock for $119 million. As of Sept. 30, 2025, $262.3 million of stock repurchase authorization remained outstanding. As of Sept. 30, 2025, PAG had around $1.9 billion in liquidity.
Penske hiked its quarterly dividend by 6 cents to $1.38 per share, marking its 20th straight quarterly increase. The dividend will be paid on Dec.2 to its shareholders on record as of Nov. 14, 2025.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -5.21% due to these changes.
VGM Scores
Currently, Penske has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Penske has a Zacks Rank #4 (Sell). We expect a below average 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, Group 1 Automotive (GPI - Free Report) , has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Group 1 Automotive reported revenues of $5.78 billion in the last reported quarter, representing a year-over-year change of +10.7%. EPS of $10.45 for the same period compares with $9.90 a year ago.
For the current quarter, Group 1 Automotive is expected to post earnings of $9.40 per share, indicating a change of -6.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.8% over the last 30 days.
Group 1 Automotive has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.