- Penske Automotive’s second quarter EBITDA was $400.6 million, which is a 4.3% increase compared to the previous year. Analysts had estimated $384.3 million.
- Earnings per share stood at $3.78, up from $3.61 in the same period last year.
- Overall revenue saw a slight decline to $7.66 billion, down 0.4% year-over-year, missing the estimate of $7.88 billion.
- Retail automotive revenue dropped by 1.5% to $6.52 billion, below the anticipated $6.79 billion.
- Retail commercial truck revenue increased by 5.7% to $943.6 million, surpassing the estimate of $893.4 million.
- Revenue from commercial vehicle distribution and other sectors rose by 6.5% to $201.2 million, beating expectations of $199.4 million.
- Overall gross margin improved to 16.9% from 16.4% last year, exceeding the estimate of 16.3%.
- Retail automotive gross margin increased to 17% from 16.2% the previous year.
- Retail commercial truck gross margin fell to 15.2% compared to 16.2% last year, against an expectation of 16%.
- Commercial vehicle distribution and other gross margin decreased to 22% from 23.6% last year, with estimates at 22.8%.
- There was an overall increase in gross margin by 50 basis points, boosting year-over-year earnings growth for three consecutive quarters.
- Four analysts have rated the stock as a buy, five as a hold, and two as a sell.
A look at Penske Automotive Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Penske Automotive Group shows a promising long-term outlook. With a solid score of 4 for Dividend and Momentum, the company demonstrates strong potential for growth and profitability in the future. Additionally, scoring a 3 for both Value and Growth factors indicates a balanced approach towards generating value for investors and expanding its market presence. Despite a slightly lower score of 2 for Resilience, suggesting some vulnerability to market fluctuations, Penske Automotive Group‘s overall scores paint a positive picture for its future performance.
Penske Automotive Group, Inc. operates a network of franchised auto dealerships in the US, Puerto Rico, and the UK. The company specializes in selling new and used vehicles while also providing maintenance and repair services for all the brands it represents. With a diverse geographical presence and a focus on offering a range of automotive services, Penske Automotive Group is positioned to leverage its strengths and capitalize on opportunities in the evolving automotive industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
