Penske Automotive Group Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Penske Automotive Group (NYS: PAG) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Penske Automotive Group beat slightly on revenues and beat expectations on earnings per share.

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


Margins expanded across the board.

Revenue details
 Penske Automotive Group logged revenue of $3.70 billion. The 10 analysts polled by S&P Capital IQ expected sales of $3.64 billion on the same basis. GAAP reported sales were 9.7% higher than the prior-year quarter's $3.37 billion.

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

EPS details
 EPS came in at $0.71. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.64 per share. Non-GAAP EPS of $0.71 for Q2 were 29% higher than the prior-year quarter's $0.55 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.69 for Q2 were 28% higher than the prior-year quarter's $0.54 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 are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
 For the quarter, gross margin was 15.4%, 20 basis points better than the prior-year quarter. Operating margin was 3.1%, 40 basis points better than the prior-year quarter. Net margin was 1.7%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $3.67 billion. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $14.36 billion. The average EPS estimate is $2.58.

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 $36.00.

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The article Penske Automotive Group Beats on Both Top and Bottom Lines 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. 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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