Penske Automotive Group, Inc.
) approved a 7.7% rise in cash dividend to 14 cents per share for
the fourth quarter of 2012 from 13 cents. The increased dividend
will be paid on Mar 1, 2013 to shareholders of record as on Feb
Penske raised its dividend by 8.3% to 13 cents for the third
quarter of 2012 as well. In fact, the leading automotive retailer
in the U.S. raised its dividend for all the quarters in 2012,
reflecting its strong financial position. The company also raised
its dividend for every quarter in 2011, except the first quarter.
Prior to that, the company stalled its dividend for 2009 and 2010
owing to the financial crisis.
Penske, a Zacks Rank #2 (Buy), reported adjusted earnings per
share of 60 cents for the third quarter of 2012, surpassing the
Zacks Consensus Estimate by $0.03. The EPS increased 20% from 50
cents in the prior-year quarter.
Revenues in the quarter rose 17.4% to $3.40 billion, beating the
Zacks Consensus Estimate of $3.26 billion. The revenue growth was
attributable to a 23.6% increase in retail sales to 88,151 units.
On a same-store basis, revenues improved 11.7% to $2.9 billion.
Same-store retail sales increased 16.6% to 81,109 units in the
Revenues from new vehicle sales grew 21.5 % to $1.76 billion,
driven by a 26.3% increase in retail sales to 48,307 units,
partially offset by a 3.8% decline in average transaction price
to $36,497. Revenues from used vehicle sales climbed 14.7% to
$995.4 million owing to a 20.4% hike in retail sales to 39,844
units, partially offset by a 4.8% decline in average transaction
price to $24,982.
Penske had cash and cash equivalents of $25.9 million and its
long-term debt was almost flat at $830.8 million as of Sep 30,
2012 compared with $850.2 million as of Dec 31, 2011.
Debt-to-capitalization ratio improved to 39.6% as of Sep 30, 2012
from 42.7% as of Dec 31, 2011.
Other stocks that are performing well in the industry where
Penske operates include
Asbury Automotive Group, Inc.
Lithia Motors Inc.
) with Zacks Rank #1 (Buy) and
) with 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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