Penske Q1 Earnings Surpass Expectations, Revenues Rise Y/Y

Penske Automotive Group PAG reported first-quarter 2025 adjusted earnings of $3.39 per share, which increased 6% year over year and beat the Zacks Consensus Estimate of $3.27. Better-than-expected results from the Retail Automotive segment, the Retail Commercial Truck segment and the Commercial Vehicle Distribution and Other segment contributed to the outperformance. The company registered net sales of $7.60 billion, beating the Zacks Consensus Estimate of $7.59 billion. The top line rose 2.1% from the year-ago quarter's level.Penske’s gross profit in the reported quarter rose 1.9% on a year-over-year basis to $1.27 billion. The operating income contracted 3.7% to $315.5 million. Foreign currency exchange negatively impacted revenues by $40.3 million, net income by $0.5 million and earnings per share (EPS) by 1 cent.In the reported quarter, same-store retail units declined 4.5% year over year to 106,251. Within the Retail Automotive segment, same-store new-vehicle revenues were up 7.2% to $2.92 billion. Same-store used vehicle revenues decreased 3.1% to $2.14 billion.Penske Automotive Group, Inc. Price, Consensus and EPS Surprise Penske Automotive Group, Inc. price-consensus-eps-surprise-chart | Penske Automotive Group, Inc. QuoteSegmental Performance of PAGIn the reported period, revenues in the Retail Automotive segment came in at $6.57 billion, which increased 1.4% from the year-ago quarter's level and beat our estimate of $6.37 billion. Total new and used vehicle deliveries were down 7.5% year over year to 109,088 units. Gross profit of $1.08 billion rose 2.5% year over year and beat our estimate of $1.04 billion.Revenues in the Retail Commercial Truck segment increased 4% to $823.7 million and topped our estimate of $805.5 million. Gross profit in the segment was $141 million, down from $144.8 million reported in the year-earlier quarter, but surpassed our estimate of $135.1 million.The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 18.8% to $211.5 million and surpassed our estimate of $206.7 million. Gross profit came in at $44.2 million, which increased from $43.2 million reported in the year-ago period and beat our estimate of $42.8 million.(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Financial TidbitsIn the quarter under review, SG&A costs totaled $913.6 million, up 3.8% year over year. As of March 31, 2025, Penske had cash and cash equivalents of $118.4 million, up from $72.4 million as of Dec. 31, 2024. The long-term debt amounted to $1.77 billion, down from $1.85 billion as of Dec. 31, 2024.During the quarter under discussion, PAG repurchased 254,406 shares of common stock for $39.9 million. Between April 1, 2025, and April 25, 2025, the company repurchased an additional 495,570 shares of common stock for $71.2 million. As of April 25, 2025, $45.8 million of stock repurchase authorization remained outstanding. As of March 31, 2025, PAG had around $2.1 billion in liquidity.PAG’s Zacks Rank & Key PicksPenske carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are Hesai Group HSAI and Standard Motor Products, Inc. SMP. HSAI sports a Zacks Rank #1 (Strong Buy), while SMP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for HSAI’s 2025 earnings indicates year-over-year growth of 336.36%, respectively. EPS estimates for 2026 have improved 12 cents in the past seven days.The Zacks Consensus Estimate for SMP’s 2025 sales and earnings implies year-over-year growth of 16.61% and 10.73%, respectively. EPS estimates for 2025 have improved 5 cents in the past 60 days. EPS estimates for 2026 have improved by a penny in the past 30 days.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report Hesai Group Sponsored ADR (HSAI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks