Global automotive retailer Penske Automotive Group (NYSE: PAG) will be reporting earnings this Wednesday before market open. Here’s what investors should know.
Penske Automotive Group met analysts’ revenue expectations last quarter, reporting revenues of $7.70 billion, up 1.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ same-store sales estimates but a miss of analysts’ EBITDA 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, analysts are expecting Penske Automotive Group’s revenue to decline 1.5% year on year to $7.60 billion, a reversal from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.09 per share.
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 six 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 Q4 results, giving us a hint as to what we can expect. AutoNation’s revenues decreased 3.9% year on year, missing analysts’ expectations by 3.6%, and OneWater reported revenues up 1.3%, in line with consensus estimates. AutoNation traded up 3.1% following the results while OneWater’s stock price was unchanged.
Read our full analysis of AutoNation’s results here and OneWater’s results here.
Investors in the automotive and marine retail segment have had steady hands going into earnings, with share prices flat over the last month. Penske Automotive Group is up 1.1% during the same time and is heading into earnings with an average analyst price target of $180.33 (compared to the current share price of $166.54).
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