Penske Automotive Group
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Penske Automotive Group beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Penske Automotive Group reported revenue of $3.40 billion. The 10 analysts polled by S&P Capital IQ expected sales of $3.30 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $2.95 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 $0.46. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.57 per share. GAAP EPS of $0.45 for Q3 were 26% lower than the prior-year quarter's $0.61 per share. (The prior-year quarter included -$0.01 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 15.0%, 80 basis points worse than the prior-year quarter. Operating margin was 2.6%, 10 basis points worse than the prior-year quarter. Net margin was 1.2%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.22 billion. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $13.13 billion. The average EPS estimate is $2.21.
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 $32.50.
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