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Shares of Penske Automotive Group, Inc. (PAG - Free Report) have gained more than 4.3% in a day’s trading, following its second-quarter 2018 earnings release. During the quarter under review, the company recorded adjusted earnings of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.42. The company recorded net earnings of $1.23 per share in the year-ago quarter.
Net income from continuing operations increased 27% year over year to $134.6 million in the reported quarter from $106.2 million a year ago.
Total revenues rose 10.3% year over year to $5.9 billion. Same-store retail unit sales increased 1.6% year over year to 126,484 units and retail unit sales went up 3.1% to 134,214. Penske Automotive’s diversified transportation service model enabled it to witness growth in the second quarter.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
Gross profit increased 8.9% to $889.8 million from $817.3 million in the prior-year quarter, operating income grew 9.7% to $188.7 million from $172 million.
Segmental Performance
The company operates under three reportable segments namely — Retail Automotive, Retail Commercial Trucks, and Commercial Vehicles Australia/Power Systems and Other.
Revenues from Retail Automotive rose to $5.5 billion from the year-ago figure of $5 billion.
Revenues from Retail Commercial Trucks increased to $338.8 million from $228.5 million in the year-ago quarter.
In the reported quarter, revenues from Commercial Vehicles Australia/Power Systems and Other grew to $146 million from $114.2 million a year ago.
Financial Position
Penske Automotive had cash and cash equivalents of $45.8 million as of June 30, 2018, almost in line with the figure recorded as of Dec 31, 2017. Long-term debt was $2.06 billion at the end of the second quarter, which was almost in line with the year-ago figure.
Dividend & Share Repurchase
Penske Automotive’s board has approved a dividend hike to 36 cents per common share from the prior payout of 35 cents, marking the twenty-ninth consecutive quarterly dividend increase.
During the three months ended Jun 30, 2018, Penske Automotive repurchased 119,608 shares for $5.8 million or at an average price of $48.61 per share. In the first half of 2018, the company repurchased 1,252,624 shares for $55.8 million.
Zacks Rank & Other Key Picks
Penske Automotive currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Oshkosh Corporation (OSK - Free Report) and LKQ Corporation (LKQ - Free Report) . Fox Factory and Oshkosh carry a Zacks Rank of 2, while LKQ sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected long-term growth rate of 15.8%. Over a year, shares of the company have gained 30.2%.
Oshkosh has an expected long-term growth rate of 18.3%. Over a year, shares of the company have gained 7.3%.
LKQ has an expected long-term growth rate of 15%. Shares of the company have risen 2.8% in the past year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Penske Automotive's (PAG) Q2 Earnings Surpass Estimates
Shares of Penske Automotive Group, Inc. (PAG - Free Report) have gained more than 4.3% in a day’s trading, following its second-quarter 2018 earnings release. During the quarter under review, the company recorded adjusted earnings of $1.58 per share, which surpassed the Zacks Consensus Estimate of $1.42. The company recorded net earnings of $1.23 per share in the year-ago quarter.
Net income from continuing operations increased 27% year over year to $134.6 million in the reported quarter from $106.2 million a year ago.
Total revenues rose 10.3% year over year to $5.9 billion. Same-store retail unit sales increased 1.6% year over year to 126,484 units and retail unit sales went up 3.1% to 134,214. Penske Automotive’s diversified transportation service model enabled it to witness growth in the second quarter.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise | Penske Automotive Group, Inc. Quote
Gross profit increased 8.9% to $889.8 million from $817.3 million in the prior-year quarter, operating income grew 9.7% to $188.7 million from $172 million.
Segmental Performance
The company operates under three reportable segments namely — Retail Automotive, Retail Commercial Trucks, and Commercial Vehicles Australia/Power Systems and Other.
Revenues from Retail Automotive rose to $5.5 billion from the year-ago figure of $5 billion.
Revenues from Retail Commercial Trucks increased to $338.8 million from $228.5 million in the year-ago quarter.
In the reported quarter, revenues from Commercial Vehicles Australia/Power Systems and Other grew to $146 million from $114.2 million a year ago.
Financial Position
Penske Automotive had cash and cash equivalents of $45.8 million as of June 30, 2018, almost in line with the figure recorded as of Dec 31, 2017. Long-term debt was $2.06 billion at the end of the second quarter, which was almost in line with the year-ago figure.
Dividend & Share Repurchase
Penske Automotive’s board has approved a dividend hike to 36 cents per common share from the prior payout of 35 cents, marking the twenty-ninth consecutive quarterly dividend increase.
During the three months ended Jun 30, 2018, Penske Automotive repurchased 119,608 shares for $5.8 million or at an average price of $48.61 per share. In the first half of 2018, the company repurchased 1,252,624 shares for $55.8 million.
Zacks Rank & Other Key Picks
Penske Automotive currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Oshkosh Corporation (OSK - Free Report) and LKQ Corporation (LKQ - Free Report) . Fox Factory and Oshkosh carry a Zacks Rank of 2, while LKQ sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected long-term growth rate of 15.8%. Over a year, shares of the company have gained 30.2%.
Oshkosh has an expected long-term growth rate of 18.3%. Over a year, shares of the company have gained 7.3%.
LKQ has an expected long-term growth rate of 15%. Shares of the company have risen 2.8% in the past year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>