Penske Automotive Group Inc.
) fourth-quarter 2013 earnings improved 19.3% to 68 cents from 57
cents reported in the year-ago quarter. The results also exceeded
the Zacks Consensus Estimate by 2 cents. Net profit from
continuing operations rose 19.3% to $61.7 million in the quarter
from $51.7 million a year ago.
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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Revenues grew 15% year over year to $3.9 billion, surpassing the
Zacks Consensus Estimate of $3.8 billion. Same-store retail
revenues rose 12.4% to $3.5 billion. The year-over-year rise was
driven by an 11.4% increase in total retail sales to 90,622
units, including a 9.8% increase in same-store retail sales to
87,924. Retail sales went up 11.2% in the U.S. and 11.9%
New Vehicle revenues escalated 10.5% to $1.98 billion on a 6.7%
rise in sales to 49,510 units. Used Vehicle revenues rose 21.9%
to $1.1 billion owing to a 17.8% increase in sales to 41,112
units. Revenues in the Service and Parts segment rose 10.2% to
Revenues in the Fleet and Wholesale Vehicle segment decreased
19.9% to $173.8 million, while revenues from the Finance and
Insurance segment rose 17.4% to $94 million. Revenues from the
Commercial Vehicle and Car Rental segment amounted to $117.4
million in the fourth quarter of 2013.
Gross profit improved 14.2% to $586.4 million from $513.3 billion
in the fourth quarter of 2012. Operating income augmented 15.9%
to $106.7 million from $92.1 million a year ago.
Fiscal 2013 Performance
Penske's earnings increased 20.5% to $2.76 per share for
full-year 2013 from $2.29 in 2012, beating the Zacks Consensus
Estimate of $2.72. Revenues for full-year 2013 increased 12.4% to
$14.7 billion from $13.1 billion in 2012.
Penske had cash and cash equivalents of $49.8 million as of Dec
31, 2013, an increase from $43.5 million as of Dec 31, 2012.
Long-term debt stood at $1.03 billion as of Dec 31, 2013, up from
$917.1 million as of Dec 31, 2012.
Penske sells new and previously-owned vehicles along with finance
and insurance products. Apart from its franchises in the U.S. and
Europe, the company offers repair and maintenance services. We
are concerned about increasing competition, high inventory level
and exposure to foreign exchange rates. Currently, it retains a
Zacks Rank #4 (Sell).
Lithia Motors Inc.
Asbury Automotive Group, Inc.
), all carrying Zacks Rank #2 (Buy), are some better-ranked
automobile stocks worth considering.