PAG Earnings Prediction
The chart below shows how PAG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PAG sees a -0.24% change in stock price 10 days leading up to the earnings, and a +3.31% change 10 days following the report. On the earnings day itself, the stock moves by +0.64%. This data can give you a slight idea of what to expect for the next quarter's release.
PAG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
7.72B
6.16%
1.70%
Gross Margin
15.80%
-0.13%
-0.25%
Operating Margin
4.32%
2.61%
3.35%
Net Margin
3.07%
16.29%
2.68%
EPS
3.54
24.65%
4.73%
No Data Available
PAG Earnings Analysis
Penske Automotive Group Inc Corporation (PAG.N) Earnings Conference Call
Positive
Record Revenue Achievement: Penske Automotive Group delivered a record revenue of $30.5 billion for 2024, marking a 3% increase year-over-year.
Net Income and EPS Growth: In Q4 2024, net income grew by 24% to $236 million, with earnings per share increasing by 25% to $3.54.
Dividend Increase Announcement: The company announced its seventeenth consecutive quarterly dividend increase, raising it by $0.03 to $1.22 per share, reflecting a 54% increase since the end of 2023.
Service Revenue Growth: Service and parts revenue increased by 13% to $771 million in Q4, with a same-store revenue growth of 7%, indicating strong demand in this segment.
Cash Flow Generation: Penske Automotive Group generated $1.2 billion in cash flow from operations in 2024, supporting ongoing acquisitions and shareholder returns.
Negative
Used Vehicle Sales Decline: Used vehicle retail units declined 6% in Q4, attributed to the disposal of three UK car shop locations, which transitioned to Sytner Select, resulting in fewer units sold.
Sales Decline Analysis: Premier Truck Group's sales decreased by 18% year-over-year, with a total of 4,432 new and used units sold in Q4, reflecting supply chain issues that delayed deliveries from earlier in the year.
Rental Revenue Decline: Rental revenue in Penske Transportation Solutions fell by 9% due to a continued freight recession impacting the number of units on rent and overall rental utilization.
BEV Pricing Pressure: The average discount on battery electric vehicles (BEVs) from MSRP was nearly $6,900 per unit in Q4, indicating significant pricing pressure in this segment.
Long-Term Debt Concerns: PAG's non-vehicle long-term debt increased by $223 million from December 2023, raising concerns about rising interest costs and potential impacts on future profitability.
PAG FAQs
How does PAG typically perform around its earnings report dates?
Is Penske Automotive Group Inc (PAG) Q4 2024 Earnings Call Summary positive or negative?
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PAG Earning Call Sentiment
Earnings call transcript: Penske Automotive Q4 2024 earnings beat
PAG.N
-5.13%Positive
The earnings call reveals strong financial performance, with significant increases in revenue, net income, and EPS. The dividend increase and share repurchase program indicate a solid shareholder return strategy. Despite some uncertainties in the used car market and commercial truck demand, the overall outlook remains optimistic. The Q&A section did not reveal significant negative trends, and the company's strategic acquisitions bolster future growth prospects. Therefore, the stock price is likely to experience a positive movement over the next two weeks.
