NYSE$PAG

Penske Automotive Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Penske Automotive Group reported record results for the third quarter of 2020, marking the most profitable quarter in company history.

Penske Automotive Group announced record results for Q3 2020, with income from continuing operations attributable to common shareholders reaching $246.5 million, or $3.07 per share. Revenue remained flat at $6 billion. These results were driven by same-store retail automotive revenue and margin expansion, coupled with expense reductions.

  • Retail automotive same-store revenue increased 3.6%.
  • Retail automotive earnings before taxes increased 170%.
  • Retail automotive same-store variable gross profit per unit retailed increased 29%.
  • Total gross margin increased 140 basis points to 16.0%.

Headline financials

Total Revenue

$5.97B

Previous: $5.97B+0.1%
EPS (adj)

$2.87

Previous: $1.42+102.1%
Used Retail Units

18.4K

No prior period
Free Cash Flow

$247M

Previous: $116M+112.2%
Net Income

$247M

Previous: $116M+112.2%
Operating Income

$284M

Previous: $169M+67.8%
Gross Profit

$957M

Previous: $870M+10.0%
Cash & Equivalents

$92.7M

Previous: $77.5M+19.6%
Total Assets

$13B

Previous: $13.7B-5.0%

Revenue & EPS history

Penske · Revenue · Quarterly

$5.97B

Q3 2020+0.1%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Penske · $5.95B total across 10 segments · Q3 2020

  • Retail Auto - New
    $2.35B
  • Retail Auto - Used
    $1.95B
  • Retail Auto - Service & Parts
    $522M
  • Truck - New
    $377M
  • Retail Auto - Fleet & Wholesale
    $257M
  • Retail Auto - F&I
    $174M
  • Commercial Vehicle Dist.
    $123M
  • Truck - Service & Parts
    $122M
  • Truck - Used
    $63.9M
  • Truck - F&I
    $4.1M

Forward guidance

Penske Automotive Group is expecting continued positive performance, with plans to expand their Used Vehicle SuperCenters.

Tailwinds

  • Strong cash flow has allowed the company to significantly reduce long-term debt.
  • Lengthened maturities.
  • Reduced future annual interest expense by an estimated $17 million.
  • Company expects to open two additional Used Vehicle SuperCenters in the next 90 days.
  • Four additional sites are under development which would increase the current footprint of SuperCenters by 40%.

Headwinds

  • The duration, severity and resolution of the COVID-19 pandemic.
  • Government imposed 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.

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 Q3 2020

Historical avgQ3 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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