Penske Automotive Group Inc.
) posted a 14.5% increase in earnings per share to 63 cents in
the first quarter of 2013 from 55 cents in the corresponding
quarter last year. Earnings in the quarter exceeded the Zacks
Consensus Estimate by a penny. Net profits increased 13.9% to
$56.9 million in the quarter from $49.9 million a year ago.
Revenues improved 7.7% to $3.40 billion, missing the Zacks
Consensus Estimate of $3.45 billion. Same-store retail revenues
rose 7.4%. The year-over-year rise in revenues was driven by a
9.9% increase in retail sales to 85,821 units, including a 6.8%
increase to 82,695 units on a same-store basis. Sales went up
12.7% in the U. S and 4.5% internationally.
Gross profits improved 7.9% to $533.0 million from $493.9 million
in the first quarter of 2012. Operating profit augmented 11.7% to
$105.2 million from $94.2 million a year ago.
New Vehicle revenues went up 12.9% to $1.7 billion on a 9.7% rise
in sales to 45,745 units. Used Vehicle revenues went up 7.4% to
$1.0 billion based on a 10.2% increase in sales to 40,076 units.
Revenues in the Service and Parts segment rose 6.8% to $383.5
Meanwhile, revenues in the Fleet and Wholesale Vehicle segment
decreased 24% to $181.9 million and in the Finance and Insurance
segment rose 11.5% to $86.7 million.
In the first quarter of 2013, the company repurchased 410,000
shares for $12.7 million at an average price of $30.93 per share.
Penske has authorized shares worth $85.6 million remaining under
its existing repurchase program.
Penske had cash and cash equivalents of $31.6 million as of Mar
31, 2013, a decrease from $43.8 million as of Dec 31, 2012.
Long-term debt amounted to $891.7 million as of Mar 31, 2013,
down from $937.5 million as of Dec 31, 2012. Long-term debt to
capitalization ratio was 40.6% versus 41.6% a year ago.
Penske Automotive Group sells new and previously owned vehicles
along with finance and insurance products. It operates 342 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.
Currently, it retains a Zacks Rank #3 (Hold).
Some other stocks that are performing well in the industry where
Penske operates include
Asbury Automotive Group, Inc.
Lithia Motors Inc.
). All these companies carry a Zacks Rank #2 (Buy).
ASBURY AUTO GRP (ABG): Free Stock Analysis
AUTONATION INC (AN): Free Stock Analysis
LITHIA MOTORS (LAD): Free Stock Analysis
PENSKE AUTO GRP (PAG): Free Stock Analysis
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