Penske Automotive Group (NYSE: PAG) shares are trading lower after the company reported worse-than-expected second-quarter sales, which were impacted by weak market conditions in the U.K. from Brexit.
The company reported earnings of $1.42 per share, which missed the analyst consensus estimate of $1.56 by 8.97%. This is a 10.13% decrease over earnings of $1.58 per share from the same period last year.
Penske Automotive reported quarterly sales of $5.76 billion, which missed the analyst consensus estimate of $5.9 billion by 2.37%. This is a 3.03% decrease over sales of $5.94 billion the same period last year.
"Our U.S. retail automotive, North American commercial truck dealership business, and investment in Penske Truck Leasing each performed very well during the second quarter. However, weak market conditions in the U.K. from Brexit and the timing of customer deliveries in Australia impacted second quarter results,” said Chairman Roger Penske.
“During the second quarter, new vehicle registrations in the U.K. market declined approximately 5%, including a nearly 7% decline in private/retail registrations, which significantly impacted our new vehicle sales volume. Additionally, an over-supply of used vehicles in the U.K. market negatively impacted used vehicle market values and our margins. As a result, the company's second quarter results were negatively impacted by approximately 16 cents per share, including foreign exchange."
Penske Automotive shares were trading down 3.93% to $45.02 at time of publication. The stock has a 52-week high of $53.84 and a 52-week low of $38.49.
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