NYSE$PAG

Penske Automotive Group Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Penske Automotive Group reported all-time record first quarter results driven by outstanding performance across its business.

Penske Automotive Group reported record first quarter results, with a 15.3% increase in total revenue to $5.8 billion and a 253.1% increase in earnings per share to $2.26. The company benefited from strong performance across its retail automotive and commercial truck dealerships, as well as its investment in Penske Transportation Solutions.

  • Penske Automotive Group reported the highest first quarter revenue, income from continuing operations, and earnings per share in company history.
  • Total revenue increased 15.3% to $5.8 billion from $5.0 billion in the prior year.
  • Income from continuing operations attributable to common shareholders increased 253.7% to $182.5 million.
  • Earnings per share increased 253.1% to $2.26.

Headline financials

Total Revenue

$5.77B

Previous: $5.01B+15.3%
EPS (adj)

$2.26

Previous: $0.64+253.1%
Free Cash Flow

$183M

Previous: $51.7M+253.0%
Net Income

$183M

Previous: $51.7M+253.0%
Operating Income

$220M

Previous: $106M+106.4%
Gross Profit

$913M

Previous: $777M+17.6%
Cash & Equivalents

$94.6M

Previous: $432M-78.1%
Total Assets

$13.2B

Previous: $13.8B-4.3%

Revenue & EPS history

Penske · Revenue · Quarterly

$5.77B

Q1 2021+15.3%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
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 Automotive Group is targeting organic and acquisition growth, coupled with operating efficiencies to drive income from continuing operations before taxes to at least $1 billion by the end of 2023.

Tailwinds

  • Targeting organic and acquisition growth.
  • Focusing on operating efficiencies.
  • Aiming to drive income from continuing operations before taxes to at least $1 billion by the end of 2023.
  • Acquired Kansas City Freightliner in April 2021, expected to add approximately $450 million in annualized revenue.
  • Opened second Porsche dealership in Washington D.C. market in January, expected to generate $50 million in annualized revenue.

Headwinds

  • The duration, severity, and resolution of the COVID-19 pandemic.
  • Government mandated restrictions on our business in light of COVID-19 or otherwise.
  • Economic conditions generally, conditions in the credit markets.
  • Changes in interest rates and foreign currency exchange rates, changes in tariff rates.
  • Adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to the COVID-19 pandemic, the shortage of automotive semiconductor chips or other components, natural disasters, recall or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the outcome of legal and administrative matters, and other factors over which management has limited control.

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 2021

Historical avgQ1 2021

+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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