Penske Automotive Group Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

Penske Automotive Group (NYS: PAG) reported earnings on April 29. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Penske Automotive Group missed estimates on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.


Margins grew across the board.

Revenue details
 Penske Automotive Group reported revenue of $3.40 billion. The 10 analysts polled by S&P Capital IQ looked for sales of $3.51 billion on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $3.23 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.63. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. Non-GAAP EPS of $0.63 for Q1 were 15% higher than the prior-year quarter's $0.55 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.) GAAP EPS of $0.64 for Q1 were 23% higher than the prior-year quarter's $0.52 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.

Margin details
 For the quarter, gross margin was 15.7%, 10 basis points better than the prior-year quarter. Operating margin was 3.1%, 20 basis points better than the prior-year quarter. Net margin was 1.7%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $3.68 billion. On the bottom line, the average EPS estimate is $0.64.

Next year's average estimate for revenue is $14.40 billion. The average EPS estimate is $2.56.

Investor sentiment

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 $35.50.

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The article Penske Automotive Group Increases Sales but Misses Revenue Estimate originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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.

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