Yahoo Finance Penske (PAG) Stock Barely Moves Since Q1 Earnings Miss
Shares of Penske Automotive Group PAG have hardly moved since the company reported first-quarter 2024 results. It reported first-quarter 2024 adjusted earnings of $3.19 per share, which decreased 26% year over year and missed the Zacks Consensus Estimate of $3.35. The company registered net sales of $7.44 billion, which missed the Zacks Consensus Estimate of $7.45 billion. The top line, however, rose 1.5% from the year-ago quarter's level.
Penske’s gross profit in the reported quarter declined 0.6% on a year-over-year basis to $1.24 billion. The operating income contracted 12.3% to $327.6 million. Foreign currency transactions had positively impacted revenues, net income and earnings per share (EPS) by $98.1 million, $1.4 million and 2 cents, respectively.
In the reported quarter, same-store retail units declined 0.5% year over year to 113,532. Within the Retail Automotive segment, same-store new-vehicle revenues were down 1.1% to $2.69 billion. Same-store used-vehicle revenues decreased 1.4% to $2.24 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 $6.48 billion, up 2.8% from the year-ago quarter's level. The figure also beat our estimate of $6.2 billion. The outperformance resulted from higher-than-expected revenues from new and used vehicles and service and parts. Gross profit of $1.06 billion fell 0.5% year over year but came ahead of our estimate of $974.7 million.
Revenues in the Retail Commercial Truck segment decreased 11.6% to $791.8 million and missed our estimate of $872.9 million. Gross profit in the segment was $144.8 million, down from $147 million reported in the year-earlier quarter. The figure, however, beat our expectation of $138.4 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 24% to $178 million and beat our estimate of $148 million. Gross profit came in at $43.2 million, which increased from $42.7 million reported in the year-ago period and beat our estimate of $38.6 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $879.8 million, up 4.1% year over year. As of Mar 31, 2024, Penske had cash and cash equivalents of $116.9 million, up from $96.4 million as of Dec 31, 2023. The long-term debt amounted to $1.46 billion, up from $1.42 billion as of Dec 31, 2023.
During the quarter under discussion, PAG repurchased 0.2 million shares of common stock for $32.9 million. As of Mar 31, 2024, $182.6 million of stock repurchase authorization remained outstanding.
Penske increased dividend by 10% to 96 cents per share, to be paid out on Jun 4, 2024, to shareholders of record as of May 20, 2024.
Zacks Rank & Key Picks
PAG currently carries a Zacks Rank #4 (Sell).
Some better-ranked players in the auto space are Geely Automobile Holdings Limited GELYY, Oshkosh Corporation OSK and Canoo Inc. GOEV, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The EPS estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 10.72%, respectively. The EPS estimates for 2024 and 2025 have improved 73 cents and 70 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for GOEV’s 2024 sales and earnings suggests year-over-year growth of 7,722.3% and 56.83%, respectively. The EPS estimates for 2024 and 2025 have improved $2.85 and $2.36, respectively, in the past 60 days.
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Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
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