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BLOOMFIELD HILLS, Mich. - Penske Automotive Group (NYSE:PAG) reported better-than-expected first quarter earnings on Wednesday, as the auto retailer saw revenue rise 2% year-over-year to $7.6 billion.
The company’s shares edged up 0.57% in premarket trading following the earnings release
The company posted adjusted earnings per share of $3.39, exceeding analyst estimates of $3.23. However, revenue of $7.6 billion fell short of the $7.71 billion consensus forecast.
Net income attributable to common stockholders increased 13.5% to $244.3 million compared to $215.2 million in the prior year period. Adjusted net income rose 5.2% to $226.3 million.
Penske’s retail automotive same-store revenue grew 2% YoY, driven by a 4% increase in service and parts revenue. New vehicle same-store revenue jumped 7%, while used vehicle revenue declined 3%.
"Our diversified international transportation services business generated record first quarter revenue, the seventh consecutive quarter of stable gross margin, and a 70-basis point improvement of adjusted selling, general, and administrative expenses as a percentage of gross profit," said Chair Roger Penske.
The company’s retail commercial truck segment saw revenue increase 4% to $823.7 million, though earnings before taxes declined to $45.1 million from $50.5 million last year due to a soft freight environment.
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