Penske Automotive Q4 Earnings Surpass Street View

Penske Automotive Group Inc PAG reported fourth-quarter FY22 sales growth of 11.4% year-on-year to $7.01 billion, beating the consensus of $6.48 billion.
Total retail automotive revenue increased 8% to $5.9 billion, including a 4% increase on a same-store basis.
On a same-store basis, Q4 retail automotive new unit sales increased 11%, and commercial truck new units increased 36%, while service and parts revenue increased 6% for retail automotive and 16% for commercial trucks.
The company's gross profit increased 0.3% Y/Y to $1.18 billion, and the gross margin contracted 180 basis points Y/Y to 16.9%.
Also Read: Penske Automotive Hikes Dividend By 7%
Selling, general and administrative expenses rose 3.1% Y/Y to $815.5 million.
Operating margin compressed from 5.7% to 4.8%, and operating income for the quarter fell 5.8% to $335.5 million.
Adjusted EBITDA declined 32.3% Y/Y to $446 million.
Adjusted EPS of $4.21 beat the analyst consensus of $3.95.
The company held $106.5 million in cash and equivalents as of Dec. 31, 2022.
Price Action: PAG shares are trading higher by 1.43% at $136.74 on the last check Wednesday.

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