- Penske Automotive’s EBITDA for the fourth quarter was $379.9 million, showing a 20% increase year over year, surpassing the estimate of $354.1 million.
- Earnings per share (EPS) rose to $3.54 from $2.84 in the previous year.
- Total revenue for the quarter reached $7.72 billion, marking a 6.2% increase over last year and exceeding the estimated $7.6 billion.
- Retail automotive revenue experienced an 8.8% increase, totaling $6.72 billion, which beat the expected $6.41 billion.
- Retail commercial truck revenue declined by 14% year over year, amounting to $773.7 million, falling short of the $964.5 million estimate.
- Commercial vehicle distribution and other revenue rose by 18% to $224.1 million, surpassing the $198 million estimate.
- Overall gross margin remained at 16.3%, slightly above the estimated 16.2%.
- Retail automotive gross margin decreased slightly to 16% from 16.2% last year.
- Retail commercial truck gross margin improved to 17.8%, higher than last year’s 15.8% and above the 15.4% estimate.
- Commercial vehicle distribution and other gross margin decreased to 20.4%, down from last year’s 22.4% and below the estimated 23.5%.
- Current analyst recommendations for Penske Automotive include 5 buy ratings, 5 hold ratings, and 2 sell ratings.
A look at Penske Automotive Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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 the Smartkarma Smart Scores, Penske Automotive Group seems to have a promising long-term outlook. The company received a high momentum score of 4, indicating strong positive price trends that may continue in the future. This suggests that investors may see increasing returns based on the company’s performance in the market. While the resilience score is slightly lower at 2, the overall scores for value, dividend, and growth are solid 3s. These scores suggest that Penske Automotive Group is well-positioned in terms of its financial health, dividend potential, and growth prospects.
Penske Automotive Group, Inc. operates a network of franchised automobile dealerships across the United States, Puerto Rico, and the United Kingdom. The company sells both new and used vehicles and provides maintenance and repair services for all the brands it represents. With a balanced set of Smart Scores indicating strengths in momentum and overall financial outlook, Penske Automotive Group appears to be a company worth watching for potential long-term investment opportunities.
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.
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