U.S. Markets open in 6 hrs 35 mins

Penske Automotive (PAG) Earnings Surpass Estimates in Q1

Zacks Equity Research

Penske Automotive Group, Inc. PAG reported first-quarter 2019 adjusted earnings of $1.25 per share, which beat the Zacks Consensus Estimate of $1.24.

During the reported quarter, income from continuing operations attributable to common shares was $100.1 million compared with $108 million a year ago.

Total revenues declined 3.2% year over year to $5.56 billion, which missed the Zacks Consensus Estimate of $5.73 billion.

Same-store retail unit sale decreased 3.8% year over year to 124,725. Within the retail automotive segment, new-vehicle revenues declined 8.8% year over year to $2.2 billion while used-vehicle revenues fell 0.8% to $1.9 billion.

The company’s gross profit decreased to $851.5 million from $864.4 million in the prior-year quarter. During the quarter under review, operating income declined 9.7% to $158.7 million.

Penske Automotive Group, Inc. Price, Consensus and EPS Surprise

 

Penske Automotive Group, Inc. Price, Consensus and EPS Surprise | Penske Automotive Group, Inc. Quote

Segmental Performance

The company operates under three segments namely — Retail Automotive, Retail Commercial Trucks, and Commercial Vehicles Australia/Power Systems and Other.

Revenues from Retail Automotive decreased to $5.09 billion from $5.30 billion in the year-ago quarter.

Revenues from Retail Commercial Trucks increased to $332.3 million from $292.4 million in the year-ago quarter.

In the reported quarter, revenues from Commercial Vehicles Australia/Power Systems and Other declined to $140.9 million from $158.5 million a year ago.

Financial Position

Penske Automotive had cash and cash equivalents of $435 million as of Mar 31, 2019, marking an increase from $39.4 million recorded as of Dec 31, 2018. As of Mar 31, 2019, long-term debt was $2.1, similar to the figure as of Dec 31, 2018.

Share Repurchase

In first-quarter 2019, the company repurchased 1,258,348 shares for $54.3 million or average of $43.19 per share.As of Mar 31, 2019, it had roughly $145.7 million available under the existing share repurchase authorization.

Zacks Rank &Stocks to Consider

Penske Automotive currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are Geely Automobile Holdings Ltd. GELYY, PACCAR Inc. PCAR and Fox Factory Holding Corp. FOXF. While Geely currently sports a Zacks Rank #1 (Strong Buy), PACCAR and Fox Factory carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Geely Automobile has an expected long-term growth rate of 7%. Share price of the company has increased 22.8% in the past three months.

PACCAR has an expected long-term growth rate of 8.4%. Over the past three months, shares of the company have gained 14.5%.

Fox Factory has an expected long-term growth rate of 5%. Shares of the company have gained 28.7% in the past three months.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
 
PACCAR Inc. (PCAR) : Free Stock Analysis Report
 
Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report
 
Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.