Exploring Penske Automotive Group's Earnings Expectations

Penske Automotive Group PAG is gearing up to announce its quarterly earnings on Tuesday, 2024-10-29. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Penske Automotive Group will report an earnings per share (EPS) of $3.52.

Penske Automotive Group bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.22, leading to a 1.64% drop in the share price on the subsequent day.

Here's a look at Penske Automotive Group's past performance and the resulting price change:

Stock Performance

Shares of Penske Automotive Group were trading at $152.26 as of October 25. Over the last 52-week period, shares are up 8.34%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Penske Automotive Group

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Penske Automotive Group.

The consensus rating for Penske Automotive Group is Underperform, derived from 4 analyst ratings. An average one-year price target of $160.25 implies a potential 5.25% upside.

Comparing Ratings with Peers

The below comparison of the analyst ratings and average 1-year price targets of Murphy USA, CarMax and Lithia Motors, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Murphy USA, with an average 1-year price target of $519.25, suggesting a potential 241.03% upside.
• The consensus among analysts is an Neutral trajectory for CarMax, with an average 1-year price target of $84.12, indicating a potential 44.75% downside.
• As per analysts' assessments, Lithia Motors is favoring an Neutral trajectory, with an average 1-year price target of $340.17, suggesting a potential 123.41% upside.

Summary of Peers Analysis

The peer analysis summary provides a snapshot of key metrics for Murphy USA, CarMax and Lithia Motors, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Penske Automotive Group ranks in the middle for Consensus rating. It is at the bottom for Revenue Growth. It is at the top for Gross Profit. It is at the bottom for Return on Equity.

Get to Know Penske Automotive Group Better

Penske Automotive Group operates in about 20 US states and overseas. It has over 150 US light-vehicle stores including in Puerto Rico as well as 210 franchised dealerships overseas, primarily in the United Kingdom but also in Australia, Continental Europe, and Japan. The company is the third-largest US-based dealership in terms of light-vehicle revenue and sells more than 40 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other segments are service and finance and insurance. The firm's Premier Truck Group owns 48 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns over 10 used-vehicle stores in the US and UK under the CarShop (US) and Sytner Select (UK) brands. The company is based in Bloomfield Hills, Michigan,

Breaking Down Penske Automotive Group's Financial Performance

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Penske Automotive Group's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 3.06%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Penske Automotive Group's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 3.13%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.94%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Penske Automotive Group's ROA stands out, surpassing industry averages. With an impressive ROA of 1.47%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Penske Automotive Group's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.68.

To track all earnings releases for Penske Automotive Group visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.