Company Overview - Penske Automotive (PAG) is headquartered in Bloomfield Hills and operates in the Retail-Wholesale sector, with a price change of 15.38% year-to-date [3] - The company currently pays a dividend of $1.19 per share, resulting in a dividend yield of 2.71%, which is significantly higher than the Automotive - Retail and Wholesale industry's yield of 0.2% and the S&P 500's yield of 1.54% [3] Dividend Performance - The annualized dividend of Penske Automotive is $4.76, reflecting a 16.4% increase from the previous year [4] - Over the past five years, the company has increased its dividend five times, achieving an average annual increase of 26.65% [4] - The current payout ratio is 31%, indicating that the company pays out 31% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Penske Automotive's earnings in 2025 is $13.86 per share, which represents a year-over-year earnings growth rate of 0.87% [5] Investment Considerations - Penske Automotive is considered a compelling investment opportunity due to its strong dividend performance and the potential for future growth [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [7]

Group 1 - The individual has 22 years of experience in the energy industry, with roles in engineering, planning, and financial analysis [1] - The investment strategy focuses on matching the S&P 500 return over the long term while achieving lower volatility and higher income [1] - The individual prefers long-term positions unless there is a compelling reason to sell, seeking investment opportunities without regard to asset class, market cap, sector, or yield [1] Group 2 - The individual holds a beneficial long position in the shares of PAG through stock ownership, options, or other derivatives [2] - The article expresses personal opinions and is not compensated for it, aside from Seeking Alpha [2] - There is no business relationship with any company mentioned in the article [2]

FOURTH QUARTER AND FULL-YEAR 2024 FINANCIAL RESULTS February 2025 PENSKE AUTOMOTIVE GROUP / 1 FORWARD-LOOKING STATEMENT DISCLAIMER Statements in this presentation may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s financial performance, expectations, and future plans. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others, those related to macr ...

Financial Data and Key Metrics Changes - Revenue increased by 3% to $30.5 billion for the year, with a record revenue of $7.7 billion in Q4, representing a 6% increase [8][10] - Generated $1.24 billion in earnings before taxes, $919 million in net income, and earnings per share of $13.74, with net income growing by 24% year-over-year [9][11] - The company announced a quarterly dividend increase of three cents per share to $1.22, marking a 54% increase since the end of 2023 [9][32] Business Line Data and Key Metrics Changes - Retail auto business delivered 120,530 units in Q4, up nearly 3%, with new units increasing by 11% and average new vehicle transaction price rising by 5% to $60,288 [12][12] - Used vehicle sales declined by 6%, but gross profit per vehicle retailed increased by $349 quarter-over-quarter [12][13] - Service and parts revenue increased by 13% to $771 million, with fixed absorption in the US rising by 320 basis points to 87.5% [15] Market Data and Key Metrics Changes - In the US, new units sold increased by 10% while used units increased by 6% in Q4, with 33% of new units sold at MSRP [16] - North American Class 8 retail sales were flat at 82,000 units, with a current industry backlog of 145,500 units [19] - In the UK, same-store new units delivered increased by 1.5%, while same-store used units declined by 18% due to the transition of car shop locations [24][25] Company Strategy and Development Direction - The company aims to grow 5% through acquisitions and 5% internally, with a focus on expanding operations in the US, UK, and Australia [44][46] - Strategic acquisitions in 2024 included 23 retail automotive franchises and five commercial truck locations, representing $2.1 billion in estimated annualized revenues [33] - The company is focusing on increasing its service and parts business, which accounts for approximately 65% of total gross profit [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and profitability, highlighting the resilience of gross profit per new vehicle retailed [39] - The company anticipates continued demand for Class A commercial trucks driven by replacement purchases in 2025 [18] - Management noted that interest rates and affordability will be key factors influencing future growth [55] Other Important Information - The company generated $1.2 billion in cash flow from operations, with a free cash flow of $811 million [31] - Total inventory was $4.6 billion, with new vehicle inventory at a 49-day supply [37] - The company maintains a strong balance sheet with a debt to total capitalization ratio of 26.2% and leverage of 1.2 times [34] Q&A Session Summary Question: Acquisition opportunities and strategy for 2025 and 2026 - Management confirmed a continued focus on acquisitions, targeting a 5% growth through acquisitions while balancing stock multiples [44][46] Question: Inflection point in the auto business and growth outlook - Management indicated that the brand mix, particularly in premium brands, supports continued growth and strong gross profit [52][55] Question: Outlook for the truck leasing business in 2025 - Management expects headwinds from interest costs but anticipates a strong first quarter and improved utilization of the rental fleet [92][93] Question: Used car business growth expectations in the UK - Management noted challenges in the UK market but emphasized a focus on organic inventory growth and retention of trades [99][100] Question: Impact of negative equity on clientele - Management stated that negative equity is less of an issue due to the premium mix and leasing strategy, with subprime exposure being minimal [108][110]

FOR IMMEDIATE RELEASE PENSKE AUTOMOTIVE GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS Q4 Revenue Increases 6% to $7.7 Billion, a Quarterly Record Q4 Same-Store Retail Automotive Service and Parts Revenue up 7% and Related Gross Profit up 9% Q4 Selling, General, and Administrative Expenses as a Percent of Gross Profit Decreases 70 bps to 70.3% Q4 Earnings Before Taxes Increases 23% to $315.2 Million; Earnings Per Share Increases 25% to $3.54 Q4 Earnings Before Taxes Increases 6% to $315.2 Million W ...

For the quarter ended December 2024, Penske Automotive (PAG) reported revenue of $7.72 billion, up 6.2% over the same period last year. EPS came in at $3.54, compared to $3.45 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $7.56 billion, representing a surprise of +2.11%. The company delivered an EPS surprise of +5.04%, with the consensus EPS estimate being $3.37.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Penske Automotive (PAG) came out with quarterly earnings of $3.54 per share, beating the Zacks Consensus Estimate of $3.37 per share. This compares to earnings of $3.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.04%. A quarter ago, it was expected that this auto dealership chain would post earnings of $3.48 per share when it actually produced earnings of $3.36, delivering a surprise of -3.45%.Over the last four quarters ...

Penske Automotive (PAG) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the sto ...

Penske Automotive Group, Inc. (PAG) is a global leader in transportation services, specializing in automotive and commercial truck retail with a diverse international presence. Strategic acquisitions and joint ventures enhance the company’s prospects amid heavy investments in expansionary efforts and declining GPU from new vehicle sales.Penske to Gain From Strategic Acquisitions & Joint VenturePenske is riding high on its strategic acquisitions. PAG completed acquisitions worth more than $340 million in ann ...

Strategic Partnership Expected to Elevate Customer Experience Acquisition Represents Third Porsche Location in Melbourne and 25th WorldwideBLOOMFIELD HILLS, Mich., Dec. 2, 2024 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers with operations across four continents and nine countries, has completed the acquisition of Porsche Centre Melbourne, located in Melbourne, Aus ...