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Penske (PAG) Down 17% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Penske Automotive (PAG - Free Report) . Shares have lost about 17% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Penske due for a breakout? Well, first let's take a quick look at the latest 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 Q4 Earnings Miss Expectations
Penske reported fourth-quarter 2025 adjusted earnings of $2.91 per share, which decreased 17.8% year over year and missed the Zacks Consensus Estimate of $3.19. The company registered net sales of $7.77 billion, which beat the Zacks Consensus Estimate of $7.64 billion. The top line also rose 0.6% from the year-ago quarter's level.
Penske’s gross profit in the reported quarter fell 5.3% on a year-over-year basis to $1.24 billion. The operating income decreased 20.8% to $275 million. Foreign currency exchange positively impacted revenues by $113.3 million, net income by $700,000 and earnings per share (EPS) by 1 cent.
In the reported quarter, same-store retail units declined 6.2% year over year to 115,898. Within the Retail Automotive segment, same-store new-vehicle revenues were down 9.6% to $3.18 billion. Same-store used vehicle revenues increased 2.8% to $2.10 billion.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment totaled $6.74 billion, which declined 4.8% from the year-ago quarter's level and topped our estimate of $6.73 billion. Total new and used vehicle deliveries were down 9.5% year over year to 105,478 units. Gross profit was $1.07 billion, down 5.7% year over year. The figure missed our estimate of $1.11 billion.
Revenues in the Retail Commercial Truck segment decreased 6.2% to $725.4 million and beat our estimate of $652.4 million. Gross profit in the segment was $121.4 million, down from $138.1 million reported in the year-earlier quarter. The figure beat our estimate of $106.1 million.
The Commercial Vehicle Distribution and Other segment’s revenues increased 35.3% to $303.3 million and beat our estimate of $257.4 million. Gross profit was $57.4 million, which increased from $45.8 million reported in the year-ago period and beat our estimate of $44.7 million.
Financial Tidbits
In the quarter under review, SG&A costs remained flat year over year at $924 million. As of Dec. 31, 2025, Penske had cash and cash equivalents of $64.7 million, down from $83.6 million as of Dec. 31, 2024. The long-term debt amounted to $1.81 billion, up from $1.13 billion as of Dec. 31, 2024.
In 2025, PAG repurchased 1,178,411 shares of common stock. As of Dec. 31, 2025, $247.5 million of stock repurchase authorization remained outstanding. As of Dec. 31, 2025, PAG had around $1.6 billion in liquidity.
Penske hiked its quarterly dividend by 2 cents to $1.40 per share, marking its 21st straight quarterly increase. The dividend will be paid on March 5, 2026, to its shareholders on record as of Feb. 25, 2026.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, Penske has a subpar Growth Score of D, a grade with the same score on the momentum front. 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 C. 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. Interestingly, Penske has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Penske (PAG) Down 17% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Penske Automotive (PAG - Free Report) . Shares have lost about 17% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Penske due for a breakout? Well, first let's take a quick look at the latest 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 Q4 Earnings Miss Expectations
Penske reported fourth-quarter 2025 adjusted earnings of $2.91 per share, which decreased 17.8% year over year and missed the Zacks Consensus Estimate of $3.19. The company registered net sales of $7.77 billion, which beat the Zacks Consensus Estimate of $7.64 billion. The top line also rose 0.6% from the year-ago quarter's level.
Penske’s gross profit in the reported quarter fell 5.3% on a year-over-year basis to $1.24 billion. The operating income decreased 20.8% to $275 million. Foreign currency exchange positively impacted revenues by $113.3 million, net income by $700,000 and earnings per share (EPS) by 1 cent.
In the reported quarter, same-store retail units declined 6.2% year over year to 115,898. Within the Retail Automotive segment, same-store new-vehicle revenues were down 9.6% to $3.18 billion. Same-store used vehicle revenues increased 2.8% to $2.10 billion.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment totaled $6.74 billion, which declined 4.8% from the year-ago quarter's level and topped our estimate of $6.73 billion. Total new and used vehicle deliveries were down 9.5% year over year to 105,478 units. Gross profit was $1.07 billion, down 5.7% year over year. The figure missed our estimate of $1.11 billion.
Revenues in the Retail Commercial Truck segment decreased 6.2% to $725.4 million and beat our estimate of $652.4 million. Gross profit in the segment was $121.4 million, down from $138.1 million reported in the year-earlier quarter. The figure beat our estimate of $106.1 million.
The Commercial Vehicle Distribution and Other segment’s revenues increased 35.3% to $303.3 million and beat our estimate of $257.4 million. Gross profit was $57.4 million, which increased from $45.8 million reported in the year-ago period and beat our estimate of $44.7 million.
Financial Tidbits
In the quarter under review, SG&A costs remained flat year over year at $924 million. As of Dec. 31, 2025, Penske had cash and cash equivalents of $64.7 million, down from $83.6 million as of Dec. 31, 2024. The long-term debt amounted to $1.81 billion, up from $1.13 billion as of Dec. 31, 2024.
In 2025, PAG repurchased 1,178,411 shares of common stock. As of Dec. 31, 2025, $247.5 million of stock repurchase authorization remained outstanding. As of Dec. 31, 2025, PAG had around $1.6 billion in liquidity.
Penske hiked its quarterly dividend by 2 cents to $1.40 per share, marking its 21st straight quarterly increase. The dividend will be paid on March 5, 2026, to its shareholders on record as of Feb. 25, 2026.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, Penske has a subpar Growth Score of D, a grade with the same score on the momentum front. 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 C. 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. Interestingly, Penske has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.