Penske Automotive Q1 Earnings Exceed Expectations

Penske Automotive Group Inc PAG reported first-quarter FY22 sales growth of 21% year-on-year to $6.97 billion, beating the consensus of $6.34 billion.
Total retail automotive revenue increased 16% to $6.0 billion, or 11% on a same-store basis.
The gross profit increased 34.9% Y/Y to $1.2 billion and the gross margin expanded 190 basis points Y/Y to 17.7%.
Selling, general and administrative expenses rose 20.1% Y/Y to $797.8 million.
The operating margin expanded 200 basis points to 5.8%, and operating income for the quarter jumped 83.1% to $402 million.
Adjusted EBITDA for the quarter was $546 million.
EPS of $4.76 beat the analyst consensus of $3.77.
The company held $170.3 million in cash and equivalents as of March 31, 2022.
Price Action: PAG shares are trading lower by 2.22% at $97.02 on the last check Wednesday.

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