Penske Automotive (PAG) Lags Q3 Earnings and Revenue Estimates

Core Viewpoint - Penske Automotive reported quarterly earnings of $3.23 per share, missing the Zacks Consensus Estimate of $3.48 per share, representing a -7.18% earnings surprise [1]. Financial Performance - The company posted revenues of $7.7 billion for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.58%, compared to $7.59 billion in the same quarter last year [2]. - Over the last four quarters, Penske has surpassed consensus EPS estimates three times and topped revenue estimates two times [2]. Stock Performance - Penske shares have increased by approximately 7% since the beginning of the year, while the S&P 500 has gained 17.2% [3]. - The stock currently holds a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.45 on revenues of $7.63 billion, and for the current fiscal year, it is $14.10 on revenues of $30.67 billion [7]. - The trend of estimate revisions for Penske was unfavorable prior to the earnings release, which may impact future stock performance [6]. Industry Context - The Automotive - Retail and Whole Sales industry is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges for stocks within this sector [8].