Penske Automotive Group Inc PAG reported second-quarter FY23 sales growth of 8% year-on-year to $7.47 billion, beating the analyst consensus estimate of $7.13 billion.
The revenue growth was driven by strong performance from its automotive and commercial truck operations, which partially offset higher interest expense and lower equity earnings from its investment in Penske Transportation Solutions.
Foreign currency exchange negatively impacted revenue by $23.7 million.
Total retail automotive revenue increased 7% to $6.4 billion, including a 6% increase on a same-store basis.
The company's gross profit increased 2.9% Y/Y to $1.27 billion, and the gross margin contracted 90 basis points Y/Y to 17%.
Selling, general and administrative expenses rose 4.9% Y/Y to $858.1 million.
The operating margin was 5.1%, and operating income for the quarter fell 1.8% to $380.8 million.
EBITDA for the quarter increased 16.4% Y/Y to $458.6 million.
EPS of $4.41 beat the analyst consensus of $4.19.
The company held $119.6 million in cash and equivalents as of June 30, 2023.
The company repurchased 2.6 million shares for $350.4 million in the quarter.
Price Action: PAG shares closed lower by 1.60% at $165.05 on Wednesday.
Now Read: Alphabet Stock Is Rising Wednesday: What's Driving The Action?
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
