Global automotive retailer Penske Automotive Group (NYSE: PAG) will be reporting earnings this Wednesday morning. Here’s what investors should know.
Penske Automotive Group beat analysts’ revenue expectations last quarter, reporting revenues of $7.77 billion, down 3.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.
Is Penske Automotive Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Penske Automotive Group’s revenue to be flat year on year, slowing from the 2.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Penske Automotive Group has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Penske Automotive Group’s peers in the automotive and marine retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CarMax posted flat year-on-year revenue, beating analysts’ expectations by 3.9%, and MarineMax reported a revenue decline of 16.5%, falling short of estimates by 14.7%. CarMax traded down 17.5% following the results while MarineMax was up 1.6%.
Read our full analysis of CarMax’s results here and MarineMax’s results here.
There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 7.7% on average over the last month. Penske Automotive Group is up 8.2% during the same time and is heading into earnings with an average analyst price target of $177.22 (compared to the current share price of $160.14).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
