NYSE$PAG

Penske Automotive Group Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Penske Automotive Group reported first quarter results with income from continuing operations of $51.6 million and EPS of $0.64. Revenue was $5.0 billion, impacted by COVID-19 in March.

Penske Automotive Group's first quarter 2020 results were impacted by the COVID-19 pandemic, particularly in March. Income from continuing operations was $51.6 million, or $0.64 per share, compared to $100.1 million, or $1.19 per share in the prior year. Revenue decreased to $5.0 billion from $5.6 billion in the same period last year. The company implemented measures to mitigate the impact of COVID-19, including expense reductions and workforce furloughs.

  • Income from continuing operations was $51.6 million, or $0.64 per share.
  • Revenue totaled $5.0 billion, a decrease from $5.6 billion in the same period last year.
  • The company generated $212 million in cash flow from operations and $145 million in free cash flow.
  • Penske implemented measures to mitigate the impact of COVID-19, including a hiring freeze, expense reductions, and workforce furloughs.

Headline financials

Total Revenue

$5.01B

Previous: $5.56B-10.0%
EPS (adj)

$0.64

Previous: $1.25-48.8%
Free Cash Flow

$51.7M

Previous: $100M-48.4%
Net Income

$51.7M

Previous: $100M-48.4%
Operating Income

$106M

Previous: $159M-33.0%
Gross Profit

$777M

Previous: $852M-8.8%
Cash & Equivalents

$432M

Previous: $43.5M+892.9%
Total Assets

$13.8B

Previous: $13.6B+1.8%

Revenue & EPS history

Penske · Revenue · Quarterly

$5.01B

Q1 2020-10%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Penske · $7.44B total across 10 segments · Q3 2023

  • Retail Auto - New
    $2.74B+14.5%
  • Retail Auto - Used
    $2.32B+5.1%
  • Retail Auto - Service & Parts
    $685M+18.7%
  • Truck - New
    $644M-8.6%
  • Retail Auto - Fleet & Wholesale
    $365M+15.6%
  • Truck - Service & Parts
    $235M+5.0%
  • Retail Auto - F&I
    $210M+5.2%
  • Commercial Vehicle Dist.
    $158M+10.0%
  • Truck - Used
    $68.4M-7.8%
  • Truck - F&I
    $5.9M+7.3%

Forward guidance

Penske believes the actions taken will help overcome the challenges of the COVID-19 pandemic and are encouraged by the improving conditions they are starting to see across many of their markets and will continue to actively monitor the situation and adjust the business model to adapt to the changes presented by COVID-19.

Tailwinds

  • Implemented a hiring freeze.
  • Initiated expense reductions.
  • Deferred approximately $150 million in capital expenditures.
  • Furloughed approximately 15,000 employees representing 57% of the worldwide workforce.
  • Implemented significant pay cuts including a temporary 100% reduction in salary for the CEO and President, a 25% reduction in salary for our other executive officers, and the Board of Directors has waived cash compensation through the end of September 2020.

Headwinds

  • The duration, severity and resolution of the COVID-19 pandemic.
  • Economic conditions generally.
  • Conditions in the credit markets.
  • Changes in interest rates and foreign currency exchange rates.
  • Adverse impacts related to the outcome of the United Kingdom’s departure from the European Union.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.9%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.8%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+11.1%

Q2 2016

Best reaction

-11.7%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.1%+1.9%+3.4%
Q4 2025+5.4%+4.2%-11.2%
Q3 2025-1.4%-2.5%-0.8%
Q1 2025-1.2%-0.9%+4.2%
Q4 2024+6.8%+4.2%-10.1%
Q3 2024-2.1%-3.3%+7.2%
Q2 2024+3.9%-2.3%+3.2%
Q1 2024-2.2%-1.2%-3.2%
Q4 2023-1.1%+3.4%+1.7%
Q3 2023+1.4%-0.4%+7.5%
Q2 2023-1.2%-2.2%-1.0%
Q1 2023+0.9%+4.3%+3.4%
Q4 2022+3.3%+5.7%+5.2%
Q3 2022+4.0%+7.5%+20.9%
Q2 2022+4.4%+10.4%+12.0%
Q1 2022+7.8%+9.0%+17.5%
Q4 2021-4.8%-6.1%-1.6%
Q3 2021-4.5%-2.3%-7.9%
Q2 2021+7.7%+11.1%+10.8%
Q1 2021+0.4%+2.1%-3.2%
Q4 2020-0.4%+0.8%+29.3%
Q3 2020-2.1%-5.9%+0.9%
Q2 2020-0.2%-3.8%+5.2%
Q1 2020+2.4%+4.8%+28.7%
Q4 2019+6.2%+6.9%-6.2%
Q3 2019-2.0%+1.1%+2.5%
Q2 2019-1.9%-3.2%-8.4%
Q1 2019+1.2%-0.3%-4.1%
Q4 2018-11.7%-8.6%-11.7%
Q3 2018-0.8%-2.0%-4.3%
Q2 2018+5.6%+8.1%+8.4%
Q1 2018+2.5%+1.2%+8.3%
Q4 2017-0.6%-1.4%-2.7%
Q3 2017+6.9%+3.7%-0.0%
Q2 2017+0.6%-3.0%-9.9%
Q1 2017+0.4%-2.8%-12.0%
Q4 2016-4.2%-2.6%-9.5%
Q3 2016-0.8%+2.5%+13.9%
Q2 2016+11.1%+6.2%+24.4%
Q1 2016+10.9%
Q4 2015+0.9%
Q3 2015-4.4%
Q2 2015+6.0%
Q1 2015-5.2%
Q4 2014-8.1%
Q3 2014-0.0%
Q2 2014-3.3%
Q1 2014+2.2%
Q4 2013+1.2%
Q3 2013-2.8%
Q2 2013+6.4%
Q1 2013+3.8%
Q4 2012-3.8%
Q3 2012-9.9%
Q2 2012-0.7%
Q1 2012+1.1%
Q4 2008+2.1%
Q4 2011+2.1%
Q3 2011+0.9%
Q2 2011-5.1%
Q1 2010-0.6%
Q1 2011+0.0%
Q4 2010-2.8%
Q3 2010+5.2%
Q3 2009+5.2%
Q2 2009+4.3%
Q4 2009+4.3%
Q2 2010+4.3%

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