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Penske Automotive Group (PAG - Free Report) reported second-quarter 2024 adjusted earnings of $3.61 per share, which decreased 18% year over year but surpassed the Zacks Consensus Estimate of $3.43. Better-than-expected results from Commercial Vehicle Distribution and Other segment drove the outperformance. The company registered net sales of $7.69 billion, surpassing the Zacks Consensus Estimate by 0.02%. The top line rose 3.1% from the year-ago quarter's level.
Penske’s gross profit in the reported quarter declined 0.7% on a year-over-year basis to $1.26 billion. The operating income contracted 11.2% to $338 million. Foreign currency transactions positively impacted revenues, net income and earnings per share (EPS) by $97.3 million, $1 million and one cent, respectively.
In the reported quarter, same-store retail units declined 1% year over year to 120,486. Within the Retail Automotive segment, same-store new-vehicle revenues were up 1.9% to $2.87 billion. Same-store used-vehicle revenues decreased 5.6% to $2.15 billion.
In the reported period, revenues in the Retail Automotive segment came in at $6.61 billion, up 3% from the year-ago quarter's level. Our estimate was for $6.63 billion. Total new and used vehicles delivered rose 2% year over year to 126,653 units. Gross profit of $1.07 billion fell 1% year over year and lagged our estimate of $1.08 billion.
Revenues in the Retail Commercial Truck segment decreased 3% to $892.3 million but outpaced our estimate of $876.3 million. Gross profit in the segment was $144.5 million, down from $146.8 million reported in the year-earlier quarter. Our expectation was $145 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 32% to $189 million and crossed our estimate of $153.6 million. Gross profit came in at $44.6 million, which increased from $40.3 million reported in the year-ago period and beat our estimate of $41.6 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $887.5 million, up 3.4% year over year. As of Jun 30, 2024, Penske had cash and cash equivalents of $115 million, up from $96.4 million as of Dec 31, 2023. The long-term debt amounted to $1.59 billion, up from $1.42 billion as of Dec 31, 2023.
During the quarter under discussion, PAG repurchased 0.2 million shares of common stock for $25.2 million. As of Jun 30, 2024, $157.4 million of stock repurchase authorization remained outstanding.
Penske increased dividend by 11% to $1.07 per share, to be paid out on Sep 4, 2024, to shareholders of record as of Aug 15, 2024. This marked the 15th consecutive quarterly increase in the payout.
Peer Releases
Group 1 Automotive (GPI - Free Report) reported second-quarter 2024 earnings of $9.80 per share, beating the Zacks Consensus Estimate of $9.43 per share. This compares to earnings of $11.73 per share a year ago. GPI posted revenues of $4.7 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 1.50%. This compares to the year-ago revenues of $4.56 billion.
AutoNation (AN - Free Report) reported second-quarter 2024 earnings of $3.99 per share, missing the Zacks Consensus Estimate of $4.31 per share. This compares to earnings of $6.29 per share a year ago. AN posted revenues of $6.48 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.09%. This compares to year-ago revenues of $6.89 billion.
O'Reilly Automotive (ORLY - Free Report) came out with quarterly earnings of $10.55 per share, missing the Zacks Consensus Estimate of $10.95 per share. This compares to earnings of $10.22 per share a year ago. ORLY posted revenues of $4.27 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 1.19%. This compares to year-ago revenues of $4.07 billion.
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Penske (PAG) Q2 Earnings Exceed Expectations, Decline Y/Y
Penske Automotive Group (PAG - Free Report) reported second-quarter 2024 adjusted earnings of $3.61 per share, which decreased 18% year over year but surpassed the Zacks Consensus Estimate of $3.43. Better-than-expected results from Commercial Vehicle Distribution and Other segment drove the outperformance. The company registered net sales of $7.69 billion, surpassing the Zacks Consensus Estimate by 0.02%. The top line rose 3.1% from the year-ago quarter's level.
Penske’s gross profit in the reported quarter declined 0.7% on a year-over-year basis to $1.26 billion. The operating income contracted 11.2% to $338 million. Foreign currency transactions positively impacted revenues, net income and earnings per share (EPS) by $97.3 million, $1 million and one cent, respectively.
In the reported quarter, same-store retail units declined 1% year over year to 120,486. Within the Retail Automotive segment, same-store new-vehicle revenues were up 1.9% to $2.87 billion. Same-store used-vehicle revenues decreased 5.6% to $2.15 billion.
Penske currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Segmental Performance
In the reported period, revenues in the Retail Automotive segment came in at $6.61 billion, up 3% from the year-ago quarter's level. Our estimate was for $6.63 billion. Total new and used vehicles delivered rose 2% year over year to 126,653 units. Gross profit of $1.07 billion fell 1% year over year and lagged our estimate of $1.08 billion.
Revenues in the Retail Commercial Truck segment decreased 3% to $892.3 million but outpaced our estimate of $876.3 million. Gross profit in the segment was $144.5 million, down from $146.8 million reported in the year-earlier quarter. Our expectation was $145 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 32% to $189 million and crossed our estimate of $153.6 million. Gross profit came in at $44.6 million, which increased from $40.3 million reported in the year-ago period and beat our estimate of $41.6 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $887.5 million, up 3.4% year over year. As of Jun 30, 2024, Penske had cash and cash equivalents of $115 million, up from $96.4 million as of Dec 31, 2023. The long-term debt amounted to $1.59 billion, up from $1.42 billion as of Dec 31, 2023.
During the quarter under discussion, PAG repurchased 0.2 million shares of common stock for $25.2 million. As of Jun 30, 2024, $157.4 million of stock repurchase authorization remained outstanding.
Penske increased dividend by 11% to $1.07 per share, to be paid out on Sep 4, 2024, to shareholders of record as of Aug 15, 2024. This marked the 15th consecutive quarterly increase in the payout.
Peer Releases
Group 1 Automotive (GPI - Free Report) reported second-quarter 2024 earnings of $9.80 per share, beating the Zacks Consensus Estimate of $9.43 per share. This compares to earnings of $11.73 per share a year ago. GPI posted revenues of $4.7 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 1.50%. This compares to the year-ago revenues of $4.56 billion.
AutoNation (AN - Free Report) reported second-quarter 2024 earnings of $3.99 per share, missing the Zacks Consensus Estimate of $4.31 per share. This compares to earnings of $6.29 per share a year ago. AN posted revenues of $6.48 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.09%. This compares to year-ago revenues of $6.89 billion.
O'Reilly Automotive (ORLY - Free Report) came out with quarterly earnings of $10.55 per share, missing the Zacks Consensus Estimate of $10.95 per share. This compares to earnings of $10.22 per share a year ago. ORLY posted revenues of $4.27 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 1.19%. This compares to year-ago revenues of $4.07 billion.