Penske Automotive Group, Inc.
) raised its dividend payment by 8.3% to 13 cents per share for
the third quarter of 2012 from 12 cents. The increased dividend
is payable on December 3, 2012 to shareholders of record as on
November 12, 2012.
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Penske raises dividend almost every year. This is the third time
the company has increased its dividend payment in a year. In the
first quarter of 2012, the raise was 10% to 11 cents per share,
while in the second quarter of the year; it was 9.1% to 12 cents
The Zacks #2 Rank (Buy) company saw an impressive 31% rise in
adjusted earnings per share to 55 cents in the second quarter of
2012 compared to 42 cents per share in the corresponding quarter
last year. With this, profits surpassed the Zacks Consensus
Estimate by a penny. In absolute terms, profits escalated 26.4%
to $49.5 million compared with $39.2 million in the year-ago
Revenues increased 19.2% to $3.4 billion in the reported quarter,
surpassing the Zacks Consensus Estimate of 3.3 billion. The
revenue growth was attributable to a 20.9% increase in retail
sales to 84,346 units.
Penske Automotive Group sells new and previously owned vehicles
along with finance and insurance products. It operates 340 retail
automotive franchises, providing 41 different brands and 30
collision repair centers. Apart from its franchises in the U.S.
and Europe, the company offers repair and maintenance services to
the brands it sells.
The company's product mix, including a wide range of imported and
luxury brands, helps it maintain a strong foothold in both the
U.S. and international markets. It competes with
). The company will release its third quarter results on October