Penske Automotive (PAG) Q3 Earnings & Revenues Top Estimates
Penske Automotive Group Inc. PAG registered earnings of $1.10 per share in the third quarter of 2017, surpassing the Zacks Consensus Estimate of $1.07. The bottom line in the prior-year quarter was $1.03.
During the quarter, income from continuing operations rose 7.9% to $94.3 million.
Revenues increased 7.2% year over year to $5.52 billion, thereby beating the Zacks Consensus Estimate of $5.34 billion. Excluding foreign exchange, revenues increased 6.9%, driven by the 9.9% rise in total retail unit sales to 130,257. Same-store retail revenues declined 2.9% to 114,941 units.
Gross profit increased 10.5% to $822.6 million from $744.2 million in third-quarter 2016. Operating income grew 7.6% to $152.2 million from $141.5 million in the year-ago quarter.
Segment Performance
The company operates under three reportable segments – Retail Automotive, Retail Commercial Trucks and Commercial Vehicles Australia/Power Systems and Other.
Revenues from Retail Automotive nudged up to $5.1 billion from $4.8 billion in the year-ago quarter.
Revenues from Retail Commercial Trucks increased to $299.6 million from $266.1 million registered in the year-ago quarter.
Revenues from Commercial Vehicles Australia/Power Systems and Other increased to $139.4 million from $113.8 million in the year-ago quarter.
Financial Position
Penske Automotive had cash and cash equivalents of $37.2 million as of Sep 30, 2017, up from $24 million as of Dec 31, 2016. Long-term debt was $2.2 billion as of Sep 30, 2017, increasing from $1.8 billion as of Dec 31, 2016.
Dividend & Share Repurchase
On Oct 11, the company’s board members approved a dividend of 33 cents per common share, up 3.1% sequentially. The increased dividend will be paid on Dec 1 to shareholders of record on Nov 10.
During the quarter, the company repurchased 252,000 shares at an average price of $39.75 per share. In October 2017, they approved a rise in repurchase authorization to $200 million.
Penske Automotive currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space include PACCAR Inc PCAR, Fox Factory Holding Corp FOXF and Daimler AG DDAIF.
While PACCAR sports a Zacks Rank #1 (Strong Buy), both Fox Factory Holding and Daimler carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
PACCAR, Fox Factory Holding and Daimler have a long-term expected earnings growth rate of 10%, 14.2%, and 2.8%, respectively.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise | Penske Automotive Group, Inc. Quote
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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
Daimler AG (DDAIF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
