Earnings Review and Free Research Report: Penske Automotive Group’s Revenue Grew 7.2%; EPS Advanced 6.8%

Research Desk Line-up: Carvana Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Penske Automotive Group, Inc. (NYSE: PAG), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=PAG, following the Company's release of its financial results on October 25, 2017, for the third quarter fiscal 2017. The transportation services Company's revenue and EPS surpassed analysts' expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Auto Dealerships industry. Pro-TD has currently selected Carvana Co. (NYSE: CVNA) for due-diligence and potential coverage as the Company announced on November 07, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Carvana when we publish it.

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Earnings Reviewed

For three months ended September 30, 2017, Penske's revenues increased 7.2% to $5.52 billion from $5.15 billion in Q3 FY16. Revenue surpassed analysts' expectations of $5.34 billion.

During Q3 FY17, Penske's gross profit increased 10.5% to $822.6 million from $744.2 million in Q2 FY17. For the reported quarter, the Company's gross margin increased 50 basis points to 14.9% of revenue from 14.4% of revenue in Q3 FY16.

During Q3 FY17, Penske's EBITDA increased 8.1% to $191.0 million from $176.7 million in the same period last year. For the reported quarter, the Company's EBITDA margin increased 10 basis points to 3.5% of revenue from 3.4% of revenue in Q3 FY16.

For the reported quarter, Penske's operating income increased 7.6% to $152.2 million from $141.5 million in the same period last year. For the reported quarter, the Company's operating margin increased 10 basis points to 2.8% of revenue from 2.7% of revenue in Q3 FY16.

During Q3 FY17, Penske's net income increased 7.9% to $94.3 million on a y-o-y basis from $87.4 million in Q3 FY16. In the reported quarter, the Company's diluted EPS increased 6.8% to $1.10 on a y-o-y basis from $1.03 in the same period last year. Diluted EPS surpassed analysts' expectations of $1.07.

Penske's Segment Details

Retail Automotive - During Q3 FY17, the Retail Automotive segment's revenue increased 6.6% to $5.09 billion from $4.77 billion in the same period last year. For the reported quarter, the segment's gross margin increased 50 basis points to 14.6% of revenue from 14.1% of revenue in Q3 FY16. For the reported quarter, the segment's total units increased 9.9% to 130,257 from 118,522 in the third quarter of 2016. For the reported quarter, the segment's same-store total units decreased 2.9% to 114,941 from 118,388 in the third quarter of 2016. During Q3 FY17, the segment's same-store revenue decreased 1.8% to $4.68 billion from $4.77 billion in the same period last year.

Retail Commercial Trucks - During Q3 FY17, the Retail Commercial Trucks segment's revenue increased 12.6% to $299.6 million from $266.1 million in the same period last year. For the reported quarter, the segment's gross margin increased 40 basis points to 14.8% of revenue from 14.4% of revenue in Q3 FY16. For the reported quarter, the segment's total units increased 10.7% to 2,096 from 1,894 in Q3 FY16. For the reported quarter, the segment's same-store total units increased 10% to 2,084 from 1,894 in the year-ago same period. During Q3 FY17, the segment's same-store revenue increased 11.8% to $297.6 million from $266.1 million in the same period last year.

Commercial Vehicles Australia/Power Systems and Other

During Q3 FY17, Penske's Commercial Vehicles Australia/Power Systems and Other segment's revenue increased 22.5% to $139.4 million from $113.8 million in the same period last year. For the reported quarter, the segment's gross margin decreased 300 basis points to 24.5% of revenue from 27.5% of revenue in Q3 FY16.

Balance Sheet

As on September 30, 2017, Penske's cash and cash equivalents increased 55% to $37.2 million from $24.0 million on December 31, 2016. For the reported quarter, the Company's long-term debt increased 18.7% to $2.17 billion from $1.83 billion in Q4 FY16.

For the reported quarter, the Company's net accounts receivables increased 6.8% to $938.8 million from $879.0 million in the fourth quarter of 2016. For the reported quarter, the Company's accounts payable increased 26.2% to $627.6 million from $497.4 million in Q4 FY16.

During Q3 FY17, Penske repurchased 252,000 shares for $10.0 million at an average price of $39.75 per share.

Stock Performance

On Friday, November 17, 2017, the stock closed the trading session at $46.03, marginally falling 0.67% from its previous closing price of $46.34. A total volume of 545.66 thousand shares have exchanged hands, which was higher than the 3-month average volume of 497.55 thousand shares. Penske Automotive's stock price surged 1.66% in the last one month, 15.94% in the past three months, and 4.21% in the previous six months. The stock is trading at a PE ratio of 10.78 and has a dividend yield of 2.87%. The stock currently has a market cap of $3.97 billion.

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