NYSE$PAG

Penske Automotive Group Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Penske Automotive Group reported record revenue and strong same-store service & parts revenue growth in Q1 2023.

Penske Automotive Group reported a strong first quarter in 2023, with record revenue increasing by 5% to $7.3 billion. Same-store service and parts revenue increased by 10% in retail automotive and 11% in retail commercial trucks. Net income was $298 million, with earnings per share of $4.31. The company also repurchased 0.9 million shares of common stock for $110.2 million.

  • Revenue increased 5% to a record $7.3 billion.
  • Net income attributable to common stockholders decreased 19% to $298.3 million.
  • Earnings per share decreased 9% to $4.31.
  • Same-store service & parts revenue increased 10% in retail automotive and 11% in retail commercial trucks.

Headline financials

Total Revenue

$7.34B

Previous: $6.98B+5.2%
EPS (adj)

$4.31

Previous: $4.76-9.5%
Used Retail Units

67.8K

Previous: 68.2K-0.6%
New Retail Units

47.7K

Previous: 45.5K+4.7%
Free Cash Flow

$298M

Previous: $368M-18.9%
Net Income

$298M

Previous: $368M-18.9%
Operating Income

$374M

Previous: $402M-7.1%
Gross Profit

$1.25B

Previous: $1.23B+1.7%
Cash & Equivalents

$101M

Previous: $170M-40.9%
Total Assets

$14.4B

Previous: $13.7B+5.3%

Revenue & EPS history

Penske · Revenue · Quarterly

$7.34B

Q1 2023+5.2%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Penske · $7.33B total across 10 segments · Q1 2023

  • Retail Auto - New
    $2.72B+11.3%
  • Retail Auto - Used
    $2.3B-5.2%
  • Retail Auto - Service & Parts
    $683M+16.5%
  • Truck - New
    $600M+27.2%
  • Retail Auto - Fleet & Wholesale
    $392M+9.6%
  • Truck - Service & Parts
    $228M+15.7%
  • Retail Auto - F&I
    $207M-4.8%
  • Commercial Vehicle Dist.
    $144M-6.7%
  • Truck - Used
    $49.5M-50.6%
  • Truck - F&I
    $5M-21.9%

Forward guidance

Penske Automotive Group's financial performance is subject to various risks and uncertainties, including macro-economic conditions, supply chain disruptions, changes in the retail model, and regulatory risks.

Tailwinds

  • Automotive retail and commercial truck retail demand for new vehicles remains strong
  • Same store service & parts revenue increased 14% from retail automotive operations (excluding changes in foreign currency exchange)
  • Same store service & parts revenue increased 11% from commercial truck operations
  • Strong expense control produced a ratio of SG&A to gross profit of 67.5%
  • SG&A to gross profit declined sequentially by 140 basis points when comparing the first quarter of 2023 to the fourth quarter of 2022

Headwinds

  • Higher interest costs
  • Inventory challenges
  • Other inflationary cost pressures
  • Foreign currency exchange negatively impacted revenue by $294.2 million
  • Equity in Earnings of Affiliates decreased by 31.4%.

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 2023

Historical avgQ1 2023

+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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