We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Penske (PAG) Surpasses Q4 Earnings and Sales Estimates
Read MoreHide Full Article
Penske Automotive Group (PAG - Free Report) reported fourth-quarter 2022 adjusted earnings of $4.21 per share, which increased from $4.10 and surpassed the Zacks Consensus Estimate of $4.03. Higher-than-expected revenues in the Retail Automotive and Retail Commercial Truck segments resulted in this outperformance. The auto retailer registered net sales of $7,012 million, which topped the Zacks Consensus Estimate of $6,378 million. The top line rose 11.4% from the year-ago quarter.
Penske’s gross profit in the reported quarter increased 0.3% on a year-over-year basis to $1,183.2 million. The operating income went down 5.8% to $335.5 million.
In the reported quarter, same-store retail units rose 2.3% year over year to 102,906. Within the Retail Automotive segment, same-store new-vehicle revenues were up 12.7% to $2,618.8 million, and same-store used-vehicle revenues fell 8.5% to $1,909.2 million.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment came in at $5,910.4 million, increasing 8% from a year ago and topping the consensus mark of $5,384 million. Gross profit of $1,008.8 million declined from $1019 million recorded in 2022.
Revenues in the Retail Commercial Truck segment increased 39.6% to $960.8 million and exceeded the consensus mark of $826 million. Gross profit in the segment was $138.2 million, rising 16.2% from the year-earlier quarter’s figure.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 5% to $140.6 million and lagged the consensus mark of $143 million. Gross profit came in at $36.2 million, declining from $41.3 million in the year-ago period.
Financial Tidbits
In the quarter under review, SG&A costs totaled $815.5 million, up 3.1% year over year. Penske had cash and cash equivalents of $106.5 million as of Dec 31, 2022, up from $100.7 million in 2021 end. The long-term debt amounted to $1,546.9 million, up from $1,392 million as of Dec 31, 2021. In 2022, PAG repurchased 8.2 million shares of common stock for $886.5 million. The company also hiked its payout by 7% to 61 cents a share.
Zacks Rank & Key Picks
Penske currently carries a Zacks Rank #3 (Hold).
A few top-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 3.57%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
Image: Bigstock
Penske (PAG) Surpasses Q4 Earnings and Sales Estimates
Penske Automotive Group (PAG - Free Report) reported fourth-quarter 2022 adjusted earnings of $4.21 per share, which increased from $4.10 and surpassed the Zacks Consensus Estimate of $4.03. Higher-than-expected revenues in the Retail Automotive and Retail Commercial Truck segments resulted in this outperformance. The auto retailer registered net sales of $7,012 million, which topped the Zacks Consensus Estimate of $6,378 million. The top line rose 11.4% from the year-ago quarter.
Penske’s gross profit in the reported quarter increased 0.3% on a year-over-year basis to $1,183.2 million. The operating income went down 5.8% to $335.5 million.
In the reported quarter, same-store retail units rose 2.3% year over year to 102,906. Within the Retail Automotive segment, same-store new-vehicle revenues were up 12.7% to $2,618.8 million, and same-store used-vehicle revenues fell 8.5% to $1,909.2 million.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment came in at $5,910.4 million, increasing 8% from a year ago and topping the consensus mark of $5,384 million. Gross profit of $1,008.8 million declined from $1019 million recorded in 2022.
Revenues in the Retail Commercial Truck segment increased 39.6% to $960.8 million and exceeded the consensus mark of $826 million. Gross profit in the segment was $138.2 million, rising 16.2% from the year-earlier quarter’s figure.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 5% to $140.6 million and lagged the consensus mark of $143 million. Gross profit came in at $36.2 million, declining from $41.3 million in the year-ago period.
Financial Tidbits
In the quarter under review, SG&A costs totaled $815.5 million, up 3.1% year over year. Penske had cash and cash equivalents of $106.5 million as of Dec 31, 2022, up from $100.7 million in 2021 end. The long-term debt amounted to $1,546.9 million, up from $1,392 million as of Dec 31, 2021. In 2022, PAG repurchased 8.2 million shares of common stock for $886.5 million. The company also hiked its payout by 7% to 61 cents a share.
Zacks Rank & Key Picks
Penske currently carries a Zacks Rank #3 (Hold).
A few top-ranked players in the auto space include Mercedes-Benz Group AG (MBGAF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 3.57%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.