Why Has Penske Automotive Group Stock Rallied?

November 14th, 2019 by Trefis Team

Penske Automotive Group (NYSE: PAG), a transportation services company that operates automotive and commercial truck dealerships, saw its stock rise by about 18% over the last month. The increase is likely driven by Penske’s Q3 results, which saw it report record revenues of almost $6 billion. Revenues were ~$80 million ahead of consensus and up by about 5.5% year-over-year. The growth is being driven by the company’s U.S. retail automotive businesses and its North American commercial truck dealership operations.

We ‘step back’ from these recent swings to review Penske Automotive Group’s performance over the last few years, as a context for what might come next. Our Interactive dashboard, Why Has Penske Automotive Group Stock Gained 18% Over The Last Month?, reviews the near term reasons and the big picture.
The context for the last few years:
A closer look At Penske Automotive Group’s Total Revenues over the last few years and the outlook

Total Revenues for Penske Automotive Group moderately increased from $21.4 Bil in 2017 to $22.8 Bil in 2018; an increase of 6.54%.

This compares with Total Revenues growth of:

  • 11.9% in 2015
  • 4.32% in 2016
  • 6.30% in 2017
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We expect Total Revenues growth to be 1% in 2019.

A closer look At Penske Automotive Group’s Total Expenses over the last few years and the outlook

Total Expense for Penske Automotive Group moderately increased from $20.8 Bil in 2017 to $22.2 Bil in 2018; an increase of 6.44%.

This compares with Total Expense growth of:

  • 12.0% in 2015
  • 4.35% in 2016
  • 6.26% in 2017

We expect Total Expense growth to be 1% in 2019.

How does Penske Automotive Group’s Revenue Growth compare with rivals?

For more information on How Penske Automotive Group’s Revenues compare with rivals Sonic, Asbury Automotive, and AutoNation, view our interactive dashboard analysis.

How has Penske Automotive Group’s EBT trended?

EBT for Penske Automotive Group increased by 10.2% from $548 Mil in 2017 to $604 Mil in 2018.

We expect EBT to decline by 0.7% to $600 million in 2019.

How has Penske Automotive Group’s Net Income and EPS trended?

For more information on Penske Automotive Group’s Net Income and EPS, view our interactive dashboard analysis.

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