Penske Automotive Group, Inc. (NYSE:PAG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Penske Automotive Group, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 14.55% to $0.63 in the quarter versus EPS of $0.55 in the year-earlier quarter.
Revenue: Rose 4.86% to $3.4 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Penske Automotive Group, Inc. reported adjusted EPS income of $0.63 per share. By that measure, the company beat the mean analyst estimate of $0.62. It missed the average revenue estimate of $3.48 billion.
Quoting Management: Chairman Roger Penske said, “Penske Automotive Group delivered strong operating results and record profitability in the first quarter, including double-digit growth in operating income, income from continuing operations and earnings per share. I was pleased to see our gross margin improve to 15.7% on the strength of a 3.1% increase in same-store service and parts revenue and a 60 basis-point increase in service and parts gross margin to 58.4%. Additionally, SG&A as a percent of gross profit improved 80 basis points year-over-year to 77.5% and 200 basis-points sequentially, helping drive an increase in our operating margin to 3.1%.”
Key Stats (on next page)…