What's in Store for Penske Automotive (PAG) in Q1 Earnings?
Penske Automotive PAG is slated to release first-quarter 2023 results on Apr 26, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $3.92 and $6.74 billion, respectively.
The auto retailer came up with better-than-anticipated results in the last reported quarter on higher-than-expected gross profit in the Retail Automotive and Retail Commercial Truck segments. Over the preceding four quarters, the company topped estimates on all occasions, the average being 10.97%. This is depicted in the graph below:
Penske Automotive Group, Inc. Price and EPS Surprise
Penske Automotive Group, Inc. price-eps-surprise | Penske Automotive Group, Inc. Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for Penske’s first-quarter earnings per share has moved higher by 2 cents over the past seven days. The bottom-line projection implies a year-on-year decline of 17.65%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 3.42%.
Factors at Play
Penske is riding high on its strategic acquisitions. Warner Truck Centers’ buyout has aided the company to diversify business, expand customer base and capitalize on the Retail Commercial Trucks segment. Buyouts of Kansas City Freightliner, McCoy and Team Trucks Centers are expected to boost Penske’s top line. The Penske Transportation Solutions (PTS) joint venture has also been boosting the prospects of the company.
The firm has been benefiting from the expansion of its digital capabilities. Digital tools available on www.carshop.com are providing a comprehensive and seamless online shopping experience to customers as well as streamlining processes. Digital sales are also churning out robust revenues for the firm and accounted for 5% of its total sales in the fourth quarter of 2022. These trends are likely to continue in the upcoming quarter.
Here's a peek at the key predictions for revenues across Penske’s segments.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues from the Retail Automotive segment — which accounts for the bulk of Penske’s overall top line — is pegged at $5,646 million, indicating contraction from $6,029 million recorded in the year-ago quarter.
For the March-end quarter, the consensus mark for revenues in the Retail Commercial Truck segment stands at $870 million, suggesting growth of $792 million from the year-ago level.
The consensus mark for revenues in the Commercial Vehicles Distribution and Other for first-quarter 2023 is pegged at $160 million, implying an increase from $154 million recorded in the first quarter of 2022.
Earnings Whispers
Our proven model predicts an earnings beat for Penske this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here.
Earnings ESP: Penske has an Earnings ESP of +1.30%, because the Most Accurate Estimate is pegged 6 cents higher than Zacks Consensus Estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Penske currently carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Here are a few other players from the auto space that, according to our model, have the right combination of elements to post an earnings beat for the quarter to be reported:
Lear LEA will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +4% and a Zacks Rank #3.
The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $2.50 per share and $5.28 billion, respectively. LEA surpassed earnings estimates in all the trailing four quarters in fiscal year 2022, the average surprise being 17.12%.
Mobileye Global Inc. MBLY will release first-quarter 2023 results on Apr 27. The Zacks Consensus Estimate for Mobileye’s to-be-reported quarter’s earnings and revenues is pegged at 13 cents per share and $463.3 million, respectively.
The company has an Earnings ESP of +11.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oshkosh OSK will release first-quarter 2023 results on Apr 27. The company has an Earnings ESP of +1.79% and a Zacks Rank #3.
The Zacks Consensus Estimate for Oshkosh’s to-be-reported quarter’s earnings and revenues is pegged at 99 cents per share and $2.09 billion, respectively. OSK surpassed earnings estimates in one out of the trailing four quarters in fiscal year 2022 while missing in the remaining three, the average negative surprise being 8.82%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
Lear Corporation (LEA) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
Mobileye Global Inc. (MBLY) : Free Stock Analysis Report
