- EBITDA Beats Estimates: Penske Automotive’s Q2 EBITDA was $384 million, beating the estimate of $358 million but down 16% year-over-year.
- EPS Decline: The Earnings Per Share (EPS) for Q2 stood at $3.61 compared to $4.41 in the previous year.
- Revenue Growth: Total revenue for Q2 was $7.70 billion, up 3.1% year-over-year and surpassing the estimate of $7.6 billion.
- Retail Automotive Revenue: Retail automotive revenue reached $6.62 billion, a 3.3% increase year-over-year, beating the estimate of $6.55 billion.
- Retail Commercial Truck Revenue: Retail commercial truck revenue fell by 2.9% to $892.3 million but still exceeded the estimate of $873.3 million.
- Commercial Vehicle Distribution Revenue: Revenue from commercial vehicle distribution and other segments surged by 32% year-over-year to $189 million, surpassing the estimate of $157.6 million.
- Gross Margin Decline: The company’s overall gross margin was 16.4% compared to 17% the previous year.
- Retail Automotive Gross Margin: Retail automotive gross margin was 16.2%, down from 17% year-over-year.
- Retail Commercial Truck Gross Margin: Retail commercial truck gross margin held at 16.2%, lower than the estimated 17%.
- Commercial Vehicle Distribution Gross Margin: Gross margin for commercial vehicle distribution and other segments was 23.6%, down from 28.1% year-over-year and missing the estimate of 25.1%.
- Expense Management: The company achieved a sequential decline in selling, general, and administrative expenses as a percentage of gross profit by 50 basis points to 70.2% due to a focus on efficiency and cost control.
- CEO Comments: Chair and CEO Roger Penske highlighted the strong performance of the service and parts business, contributing to a record total quarterly revenue.
A look at Penske Automotive Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| 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 Smartkarma Smart Scores, the long-term outlook for Penske Automotive Group looks promising. With a Growth score of 4, the company is positioned for potential expansion and development. This indicates a positive trajectory for the company’s future performance. Additionally, a Value score of 3 suggests that Penske Automotive Group is reasonably priced in relation to its fundamentals, offering potential value for investors.
However, it’s important to note that Penske Automotive Group has a Resilience score of 2, which indicates a lower level of resilience compared to other factors. This suggests that the company may face challenges in adapting to unforeseen circumstances. Overall, with an overall Smart Score of 3, Penske Automotive Group shows a balanced performance across various factors, making it a company to watch in the auto dealership industry.
**Summary:** Penske Automotive Group, Inc. operates franchised automobile dealerships across the United States, Puerto Rico, and the United Kingdom. The company sells new and used vehicles while offering maintenance and repair services for all brands it represents, showcasing a diversified and widespread presence in the automotive market.
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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