NYSE$PAG

Penske Automotive Group Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Penske Automotive Group reported a record third quarter revenue, increasing by 7% to $6.9 billion and record earnings per share, increasing by 3% to $4.61.

Penske Automotive Group reported a strong third quarter with record revenue of $6.9 billion, a 7% increase year-over-year, and record earnings per share of $4.61, a 3% increase year-over-year. The company's performance was driven by strong demand for new vehicles and increased service and parts revenue.

  • Revenue increased 7% to $6.9 billion.
  • Earnings per share increased 3% to $4.61.
  • Premier Truck Group EBT increased 9% to $52.8 million.
  • Earnings From Penske Transportation Solutions increased 15% to $135.5 Million.

Headline financials

Total Revenue

$6.92B

Previous: $6.5B+6.5%
EPS (adj)

$4.61

Previous: $4.46+3.4%
Free Cash Flow

$340M

Previous: $355M-4.2%
Net Income

$340M

Previous: $355M-4.2%
Operating Income

$363M

Previous: $378M-4.0%
Gross Profit

$1.19B

Previous: $1.17B+1.8%
Cash & Equivalents

$92.3M

Previous: $119M-22.6%
Total Assets

$13.6B

Previous: $12.7B+6.8%

Revenue & EPS history

Penske · Revenue · Quarterly

$6.92B

Q3 2022+6.5%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Penske · $6.85B total across 10 segments · Q3 2022

  • Retail Auto - New
    $2.4B
  • Retail Auto - Used
    $2.21B
  • Truck - New
    $705M
  • Retail Auto - Service & Parts
    $577M
  • Retail Auto - Fleet & Wholesale
    $316M
  • Truck - Service & Parts
    $224M
  • Retail Auto - F&I
    $200M
  • Commercial Vehicle Dist.
    $143M
  • Truck - Used
    $74.2M
  • Truck - F&I
    $5.5M

Forward guidance

Penske Automotive Group has added approximately $1.3 billion in annualized revenue through acquisitions and open points.

Tailwinds

  • Strong earnings and cash flow
  • Board of Directors has increased the quarterly dividend four times in 2022 from $0.46 per share to $0.57 per share
  • Repurchased 5.5 million shares of common stock for approximately $584.8 million
  • Acquired 148,440 shares of common stock for $17.2 million from employees
  • Increased the authority delegated to management to repurchase our outstanding securities by $250 million

Headwinds

  • General economic and industry conditions, including the effect of COVID-19 on the global economy
  • The rate of inflation, including its impact on vehicle affordability
  • Changes in interest rates and foreign currency exchange rates
  • Our ability to obtain vehicles and parts from our manufacturers, especially in light of the COVID-19 pandemic and the war in Ukraine, including global shortages in microchip availability or other vehicle components
  • Changes in the retail model either from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of electric vehicles

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 2022

Historical avgQ3 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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