NYSE$PAG

Penske Automotive Group Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Penske Automotive Group reported record fourth quarter revenues, with an increase in earnings before taxes and earnings per share compared to the previous year.

Penske Automotive Group reported an 8.1% increase in revenue for the fourth quarter of 2019, reaching a record high. Earnings per share increased by 8.7% to $1.25, and by 12.6% compared to the adjusted fourth quarter of 2018. The company's performance was driven by strength in U.S. auto retail operations and the recent commercial truck acquisition, offsetting challenging market conditions in the U.K.

  • Revenue increased by 8.1% compared to the prior year.
  • Same-store retail automotive revenue increased by 5.5%.
  • Earnings before taxes increased by 10.2%.
  • Earnings per share increased 12.6% when compared to adjusted 2018.

Headline financials

Total Revenue

$5.88B

Previous: $5.44B+8.1%
EPS (adj)

$1.25

Previous: $1.11+12.6%
New Vehicle GPU

$3.29K

No prior period
F&I Per Unit

$1.32K

No prior period
Used Retail Units

65.3K

No prior period
New Retail Units

56.0K

No prior period
Net Income

$101M

Previous: $98.1M+3.3%
Operating Income

$153M

Previous: $137M+11.9%
Gross Profit

$867M

Previous: $808M+7.2%
Cash & Equivalents

$28.1M

Previous: $39.4M-28.7%
Total Assets

$13.9B

Previous: $10.9B+27.9%

Revenue & EPS history

Penske · Revenue · Quarterly

$5.88B

Q4 2019+8.1%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Penske · $5.85B total across 10 segments · Q4 2019

  • Retail Auto - New
    $2.45B
  • Retail Auto - Used
    $1.71B
  • Retail Auto - Service & Parts
    $542M
  • Truck - New
    $368M
  • Retail Auto - Fleet & Wholesale
    $303M
  • Truck - Service & Parts
    $163M
  • Retail Auto - F&I
    $161M
  • Commercial Vehicle Dist.
    $120M
  • Truck - Used
    $29.2M
  • Truck - F&I
    $3.4M

Forward guidance

Penske Automotive Group did not provide specific forward guidance in this earnings report. However, the CEO expressed encouragement with improved business conditions in the U.K. and a stronger order environment as the U.K. officially separated from the European Union.

Tailwinds

  • Improved business conditions in the U.K.
  • Stronger order environment in the U.K.
  • U.K. officially separated from the European Union at the end of January.
  • Revenue increased by 8.1% compared to the prior year.
  • Same-store retail automotive revenue increased by 5.5%.

Headwinds

  • Challenging market conditions in the U.K. impacted results.
  • Foreign exchange rates negatively impacted earnings per share.
  • Used Vehicles Gross Profit decreased for the twelve months ended.
  • Retail Commercial Truck Same-Store Units decreased.
  • Retail Commercial Truck Same-Store Revenue decreased.

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 Q4 2019

Historical avgQ4 2019

+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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