Penske Automotive (PAG) Q4 Earnings Beat Estimates, Rise Y/Y
Zacks Investment Research | Feb 05, 2020 08:01PM ET
Penske Automotive Group, Inc. (NYSE:PAG) reported fourth-quarter 2019 adjusted earnings per share of $1.25 compared with $1.11 recorded in the year-ago quarter. Also, the bottom line beat the Zacks Consensus Estimate of $1.20. Despite weak market conditions in the U.K., largely due to Brexit, the company managed to perform well in the fourth quarter on the back of robust U.S. retail operations along with synergies from the Warner Truck Group acquisition.
Penske Automotive, which belongs to the Retail and Whole Sales industry, posted revenues of $5,881 million for the quarter ended Dec 31, 2019. The figure rose from the year-ago quarter’s level of $5,439 million. Further, it beat the Zacks Consensus Estimate of $5,693 million.
The company’s gross profit increased to $866.5 million from $808.1 million in the prior-year quarter. During the quarter under review, operating income increased 11.9% to $152.8 million.
Same-store retail unit sales increased 1.9% year over year to 118,598. Within the retail automotive segment, new-vehicle revenues rallied 6.2% year over year to $2.4 billion while used-vehicle revenues increased 3.7% year over year to $1.67 billion.
Segmental Details
Revenues in the Retail Automotive rose to $5,162.7 million from $4949.2 million in the year-ago quarter. Gross profit was $755.1 million compared with $720.1 million in the fourth quarter of 2018. It also topped the Zacks Consensus Estimate of $722 million in the quarter.
In the quarter, revenues in the Retail Commercial Trucks segment increased to $599.1 million from $358 million in the year-ago quarter. Gross profit for the segment was $78.3 million, which missed the Zacks Consensus Estimate of $82 million. However, it increased from the year-ago figure of $54.7 million in the quarter.
Revenues in the Commercial Vehicles Australia/Power Systems and Other declined to $119.6 million from $132.1 million in the prior-year quarter. Gross profit was $33.1 million compared with $33.3 million in the fourth quarter of 2018. It missed the Zacks Consensus Estimate of $36.10 million in the quarter.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
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