Global automotive retailer Penske Automotive Group (NYSE: PAG) will be reporting results this Wednesday before the bell. Here’s what to look for.
Penske Automotive Group beat analysts’ revenue expectations last quarter, reporting revenues of $7.86 billion, down 1.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Penske Automotive Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Penske Automotive Group’s revenue to grow 4.3% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Penske Automotive Group has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Penske Automotive Group’s peers in the automotive and marine retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. CarMax delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 8.2%, and Genuine Parts reported revenues up 6%, topping estimates by 1.6%. CarMax’s stock price was unchanged after the resultswhile Genuine Parts was down 1.7%.
Read our full analysis of CarMax’s results here and Genuine Parts’s results here.
Investors in the automotive and marine retail segment have had steady hands going into earnings, with share prices flat over the last month. Penske Automotive Group is up 19.9% during the same time and is heading into earnings with an average analyst price target of $197.88 (compared to the current share price of $215.82).
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