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Penske Automotive reports Q3 earnings and revenue miss

EditorRachael Rajan
Published 29/10/2024, 12:10
© Reuters.
PAG
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BLOOMFIELD HILLS, Mich. - Penske Automotive Group (NYSE:PAG) reported third quarter results on Tuesday, with both earnings and revenue missing consensus estimates.

The automotive retailer posted earnings per share of $3.39, falling short of analyst expectations of $3.44. Revenue increased 2% year-over-year to $7.6 billion, but came in below the consensus estimate of $7.69 billion.

Penske's new vehicle sales rose 5% in units, while used vehicle unit sales declined 13% compared to the prior year quarter. The company noted its U.K. CarShop locations were transitioned to Sytner Select dealerships, contributing to the used vehicle sales decline.

Service and parts revenue was a bright spot, increasing 14% to a record $778 million. On a same-store basis, service and parts revenue grew 7%.

"I am pleased with our financial performance during the third quarter, despite the impact from the stop sale of certain vehicles and the residual impact from the CDK Cyber Security incident," said Chair and CEO Roger Penske.

The company repurchased 0.4 million shares for $58.1 million during the first nine months of 2024. Penske also announced a 11% increase to its quarterly dividend to $1.19 per share.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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