NYSE$PAG

Penske Automotive Group Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Penske Automotive Group reported all-time record quarterly earnings for Q2 2022.

Penske Automotive Group reported all-time record quarterly earnings for the second quarter of 2022. Revenue decreased slightly to $6.9 billion, but excluding foreign currency exchange impacts, revenue would have increased by 2%. Income from continuing operations increased by 10% to $374.0 million, with earnings per share up 17% to $4.93.

  • Earnings before taxes increased 8% to $500 million.
  • Income from continuing operations increased 10% to $374 million.
  • Earnings per share increased 17% to $4.93.
  • The Board of Directors increased securities repurchase authorization by $250 million.

Headline financials

Total Revenue

$6.91B

Previous: $6.99B-1.2%
EPS (adj)

$4.93

Previous: $4.47+10.3%
Used Retail Units

70.0K

Previous: 74.7K-6.3%
New Retail Units

45.5K

Previous: 57.8K-21.2%
Free Cash Flow

$374M

Previous: $339M+10.4%
Net Income

$374M

Previous: $339M+10.4%
Operating Income

$388M

Previous: $403M-3.7%
Gross Profit

$1.24B

Previous: $1.18B+4.6%
Cash & Equivalents

$155M

Previous: $165M-6.2%
Total Assets

$13.5B

Previous: $13.3B+1.5%

Revenue & EPS history

Penske · Revenue · Quarterly

$6.91B

Q2 2022-1.2%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Penske · $6.89B total across 10 segments · Q2 2022

  • Retail Auto - New
    $2.45B-13.0%
  • Retail Auto - Used
    $2.39B+2.6%
  • Retail Auto - Service & Parts
    $597M+9.3%
  • Truck - New
    $447M+12.0%
  • Retail Auto - Fleet & Wholesale
    $345M+15.0%
  • Retail Auto - F&I
    $221M+4.3%
  • Truck - Service & Parts
    $220M+39.6%
  • Commercial Vehicle Dist.
    $141M-14.4%
  • Truck - Used
    $78.7M+33.4%
  • Truck - F&I
    $4.5M+18.4%

Forward guidance

Penske Automotive Group has signed an agreement to acquire five Mercedes-Benz dealerships and three aftersales locations in North London, United Kingdom, from Mercedes-Benz Retail Group U.K. Closing of the transaction is expected to occur during the third quarter of 2022, subject to the satisfaction or waiver of customary conditions.

Tailwinds

  • Strong earnings and cash flow.
  • Board of Directors has increased the quarterly dividend three times in 2022 from $0.46 per share to $0.53 per share.
  • Company repurchased shares of common stock.
  • Board of Directors increased the authority delegated to management to repurchase outstanding securities by $250 million.
  • Company's total available repurchase authority is $330.6 million.

Headwinds

  • Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.’s financial performance, acquisitions, and growth plans.
  • Actual results may vary materially because of risks and uncertainties that are difficult to predict.
  • These risks and uncertainties include, among others, the Company's ability to successfully complete the acquisition of the Mercedes-Benz dealerships described in this press release, including the satisfaction or waiver of closing conditions with respect to such acquisition, the duration, severity, and resolution of the COVID-19 pandemic, government mandated restrictions on our business in light of COVID-19 or otherwise, macro-economic and geo-political conditions generally, conditions in the credit markets, inflation, changes in interest rates and foreign currency exchange rates, changes in tariff rates, changes in the distribution model in our international operations via agency or other means, new or enhanced regulations that may impact the sale of certain vehicles through our dealerships, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability as a result of the COVID-19 pandemic, the war in Ukraine, the shortage of automotive semiconductor chips or other components, natural disasters, recall initiatives 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.
  • These forward-looking statements should be evaluated together with additional information about Penske Automotive Group’s business, markets, conditions, and other uncertainties, which could affect Penske Automotive Group’s future performance.
  • These risks and uncertainties are addressed in Penske Automotive Group’s Form 10-K for the year ended December 31, 2021, Form 10-Q for the quarterly period ended March 31, 2022, and its other filings with the Securities and Exchange Commission (“SEC”).

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 Q2 2022

Historical avgQ2 2022

+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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