Penske Automotive Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Penske Automotive Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins increased, net margins increased.
Penske Automotive Group recorded revenue of $3.24 billion. The 10 analysts polled by S&P Capital IQ expected to see sales of $3.14 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $2.75 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.55. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS of $0.51 for Q1 were 42% higher than the prior-year quarter's $0.36 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.6%, 40 basis points worse than the prior-year quarter. Operating margin was 2.9%, 30 basis points better than the prior-year quarter. Net margin was 1.4%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.24 billion. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $12.91 billion. The average EPS estimate is $2.17.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Penske Automotive Group is outperform, with an average price target of $27.09.
If you're invested in retailers like Penske Automotive Group, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add Penske Automotive Group to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.