Penske Automotive Group Inc.
) posted a 21.3% increase in profits to 57 cents in the fourth
quarter of 2012 from 47 cents per share in the same quarter of
2011. EPS exceeded the Zacks Consensus Estimate by 4 cents. Net
profits increased 19.5% to $51.0 million in the quarter from
$42.7 million a year ago.
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Revenue escalated 17.9% to $3.4 billion, including an 11.4% rise
in same-store retail revenues in the quarter. It was marginally
higher than the Zacks Consensus Estimate of $3.3 billion.
The improvement was driven by a 19.3% increase in total retail
unit sales, including an 11.5% increase on a same-store basis.
Gross profit improved 16.9% to $515.1 million while operating
profit increased 19.9% to $91.5 million.
New Vehicle revenues went up 21.3% to $1.8 billion on a 21.7%
rise in sales to 46,392 units. Used Vehicle revenues went up
13.2% to $902.5 million based on a 16.2% increase in sales to
34,991 units. Revenues in the Service and Parts segment rose 9.2%
to $363.5 million.
Meanwhile, revenues in the Fleet and Wholesale Vehicle segment
increased 27.2% to $221.2 million and in the Finance and
Insurance segment rose 19.3% to $80.2 million.
For full year 2012, adjusted EPS rose 26.7% to $2.28 from $1.80 a
year ago. Total revenue went up 18.3% to $13.2 billion while
same-store retail revenues rose 9.9% to $11.2 billion during the
year. Total retail units increased 20.6% to 326,344 vehicles
while same-store retail units scaled up 12.3% to 294,888
Penske benefited from its expanded global presence by completing
acquisitions in Northern Ireland and Italy, as well as
domestically by entering the Madison, WI market in the U.S. In
total, the acquisitions contributed $750 million in estimated
annualized revenue during the year.
Penske had cash and cash equivalents of $43.8 million as of Dec
31, 2012, an improvement from $27.2 million as of Dec 31, 2011.
Long-term debt amounted to $937.5 million as of Dec 31, 2012, up
from $850.2 million as of Dec 31, 2011. However, long-term debt
to capitalization ratio decreased to 41.6% from 42.5% a year ago.
Penske Automotive Group sells new and previously owned vehicles
along with finance and insurance products. It operates 344 retail
automotive franchises, offering 40 different brands and 30
collision repair centers. Apart from its franchises in the U.S.
and Europe, the company offers repair and maintenance services.
The company currently has a Zacks Rank #2 on its stock, which
translates to a Buy rating for the short term (1 to 3 months).
Other stocks that are currently performing well in the same
Asbury Automotive Group, Inc.
Rush Enterprises, Inc.
) with Zacks Rank #1 (Strong Buy) and
Group 1 Automotive
) with Zacks Rank #2 (Buy).