Penske Automotive Q3 Revenue Grows On Strong North American Performance, Used Vehicle Affordability Remains a Concern, Says CEO

Penske Automotive Group Inc (NYSE: PAG) reported third-quarter FY23 sales growth of 8% year-on-year to $7.45 billion, beating the analyst consensus of $7.26 billion. EPS of $3.92 missed the analyst consensus of $4.04.

The results reflected strong performance from its North American automotive and commercial truck operations, partially offset by lower earnings from its U.K. automotive operations, higher interest expense, and lower equity earnings from its investment in Penske Transportation Solutions.

Total retail automotive revenue increased 9.9% to $6.33 billion, including a 9% increase on a same-store basis.

The company's gross profit increased 2.8% Y/Y to $1.22 billion, and the gross margin contracted 70 basis points Y/Y to 16.4%.

The operating margin was 4.5%, down by 70 bps Y/Y, and operating income for the quarter fell 8.6% to $331.5 million.

EBITDA for the quarter fell to $416.4 million, down from $516.6 million a year ago.

The company held $104.4 million in cash and equivalents as of September 30, 2023.

Commenting on the company's financial results, Chair and CEO Roger Penske said, "The new vehicle market remains solid while used vehicle supply and affordability remains challenging."

Price Action: PAG shares traded lower by 0.48% at $142.88 on the last check Wednesday.