Core Insights - Penske Automotive Group (PAG) reported second-quarter 2025 adjusted earnings of $3.78 per share, a 4.7% increase year over year, surpassing the Zacks Consensus Estimate of $3.56 [1][10] - The company achieved net sales of $7.66 billion, which fell short of the Zacks Consensus Estimate of $7.87 billion, representing a 0.4% decline from the previous year [1][10] Financial Performance - Gross profit for the quarter rose 2.6% year over year to $1.30 billion, while operating income increased by 3% to $348.2 million [2] - SG&A costs totaled $906.3 million, reflecting a 2.1% year-over-year increase [7] - As of June 30, 2025, cash and cash equivalents stood at $155.3 million, up from $72.4 million at the end of 2024, with long-term debt reduced to $906.7 million from $1.13 billion [7] Segment Performance - Retail Automotive segment revenues decreased by 1.5% to $6.52 billion, missing estimates, with total new and used vehicle deliveries down 11.9% year over year to 102,545 units [4] - Retail Commercial Truck segment revenues increased by 5.7% to $943.6 million, exceeding estimates, although gross profit slightly declined [5] - The Commercial Vehicle Distribution and Other segment saw revenues rise by 6.5% to $201.2 million, surpassing estimates, but gross profit fell short of expectations [6] Shareholder Returns - PAG repurchased 630,044 shares for $93.3 million, with $295.7 million remaining in stock repurchase authorization as of June 30, 2025 [8] - The quarterly dividend was increased by 6 cents to $1.32 per share, marking the 19th consecutive quarterly increase, payable on September 3, 2025 [8]

Core Insights - Penske Automotive reported revenue of $7.66 billion for the quarter ended June 2025, a decrease of 0.5% year-over-year, with EPS at $3.78, up from $3.61 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $7.87 billion, resulting in a surprise of -2.63%, while the EPS exceeded expectations by +6.18% [1] Financial Performance Metrics - Retail Automotive Gross Profit Per Vehicle Retailed for new vehicles was $5,443, surpassing the average estimate of $5,125.47 [4] - Retail Commercial Truck Revenue Per Vehicle Retailed for new vehicles was $141,345, exceeding the average estimate of $138,729.90 [4] - Retail Automotive Units for used retail were 54,999, below the average estimate of 62,109 [4] - Retail Automotive Revenue Per Vehicle Retailed for new vehicles was $61,340, compared to the estimated $56,292.94 [4] - Revenue from Retail Automotive for new vehicles was $2.94 billion, lower than the estimated $3.13 billion, reflecting a -1.8% change year-over-year [4] - Revenue from Retail Automotive for fleet and wholesale was $358.1 million, below the estimated $376.45 million, representing a -6.3% change year-over-year [4] - Revenue from Retail Automotive for service and parts was $816.6 million, exceeding the estimate of $791.44 million, with a year-over-year change of +8.5% [4] - Revenue from Retail Automotive for finance and insurance was $200.5 million, compared to the estimated $208.12 million, reflecting a -3.9% change year-over-year [4] - Revenue from Retail Automotive for used vehicles was $2.2 billion, below the estimated $2.27 billion, representing a -3.3% change year-over-year [4] - Total Revenue from Retail Automotive was $6.52 billion, lower than the estimated $6.78 billion, indicating a -1.5% change year-over-year [4] - Revenue from Retail Commercial Truck was $943.6 million, exceeding the estimated $906.79 million, with a +5.8% change year-over-year [4] - Revenue from Commercial Vehicle Distribution and Other was $201.2 million, surpassing the estimated $195.44 million, reflecting a +6.5% change year-over-year [4] Stock Performance - Penske's shares have returned -5.5% over the past month, contrasting with the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]