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 +0.22% change in stock price 10 days leading up to the earnings, and a +4.13% change 10 days following the report. On the earnings day itself, the stock moves by -0.05%. 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
7.59B
1.92%
-1.38%
Gross Margin
15.84%
-0.44%
-0.50%
Operating Margin
4.18%
-6.07%
-4.78%
Net Margin
2.99%
-15.77%
-5.38%
EPS
3.38
-13.55%
-6.37%
No Data Available
PAG Earnings Analysis
Penske Automotive Group, Inc. Corporation (PAG.N) Earnings Conference Call
Positive
Quarterly Revenue Milestone: 1. Record Revenue: Penske Automotive Group achieved a third-quarter record revenue of $7.6 billion, reflecting a 2% increase year-over-year.
Robust Profitability: 2. Strong Net Income: The company reported a net income of $226 million, resulting in earnings per share of $3.39, showcasing robust profitability.
Service and Parts Revenue Surge: 3. Service and Parts Growth: Service and parts revenue reached an all-time high of $778 million, with a 14% increase contributing significantly to overall revenue.
Strong Gross Profit Performance: 4. Increased Gross Profit: Gross profit per new vehicle retail remained strong at $5,072, only down $230 sequentially, and nearly $2,000 higher than in 2019.
Dividend Payout Boost: 5. Dividend Increase: Penske Automotive announced an 11% increase in its cash dividend to $1.19 per share, marking a 51% increase in cash payout since the end of the previous year.
Negative
Used Vehicle Sales Decline: 1. Decline in Used Vehicle Sales: Used vehicle retail sales decreased by 13% during the quarter, significantly impacted by the transition of U.K.-based CarShop locations to Sytner Select dealerships, which sell fewer units.
Stop Sale Financial Impact: 2. Impact of Stop Sales: The stop sale of certain vehicles, particularly affecting 1.5 million BMW units, resulted in a gross profit impact of approximately $6 million and a net impact of $4 million due to warranty repairs.
Rising Long-term Debt: 3. Increased Debt Levels: Long-term debt rose to $1.88 billion, an increase of $250 million from the end of December 2023, raising concerns about financial leverage in a high-interest rate environment.
Earnings Decline Analysis: 4. Freight Market Challenges: Penske Transportation Solutions reported a 27% decline in earnings compared to Q3 last year, primarily due to a $21 million increase in maintenance expenses and a $44 million rise in depreciation expenses.
Same-Store Automotive Revenue Decline: 5. Decline in Same-Store Retail Automotive Revenue: Same-store retail automotive revenue decreased by 5%, indicating a downturn in sales performance despite overall revenue growth.
PAG FAQs
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PAG Earning Call Sentiment
Penske Automotive Group, Inc. (PAG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
PAG.N
0.68%Positive
The earnings call summary reveals strong financial performance, including record revenues and increased dividends. The Q&A highlights challenges like stop sales but shows management's confidence in maintaining high margins. The company's strategic acquisitions and international expansion further bolster its outlook. Despite some uncertainties, the overall sentiment is positive, likely leading to a 2% to 8% stock price increase.
