Penske Automotive (PAG) Q3 Earnings and Revenues Lag Estimates

Company Performance - Penske Automotive (PAG) reported quarterly earnings of $3.36 per share, missing the Zacks Consensus Estimate of $3.48 per share, and down from $3.90 per share a year ago, representing an earnings surprise of -3.45% [1] - The company posted revenues of $7.59 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.26%, compared to year-ago revenues of $7.45 billion [2] - Over the last four quarters, Penske has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Outlook - Penske shares have lost about 3% since the beginning of the year, while the S&P 500 has gained 22.1% [3] - The current consensus EPS estimate for the coming quarter is $3.39 on revenues of $7.7 billion, and for the current fiscal year, it is $13.72 on revenues of $30.62 billion [7] - The estimate revisions trend for Penske is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Automotive - Retail and Whole Sales industry, to which Penske belongs, is currently in the bottom 20% of over 250 Zacks industries, which may impact the stock's performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]