Uncovering Potential: Penske Automotive Group's Earnings Preview

Penske Automotive Group (NYSE:PAG) is gearing up to announce its quarterly earnings on Wednesday, 2025-04-30. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Penske Automotive Group will report an earnings per share (EPS) of $3.23.

The announcement from Penske Automotive Group is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

During the last quarter, the company reported an EPS beat by $0.25, leading to a 0.82% drop in the share price on the subsequent day.

Here's a look at Penske Automotive Group's past performance and the resulting price change:

Quarter	Q4 2024	Q3 2024	Q2 2024	Q1 2024
EPS Estimate	3.29	3.41	3.39	3.35
EPS Actual	3.54	3.39	3.61	3.21
Price Change %	-1.0%	-0.0%	-2.0%	-1.0%

Market Performance of Penske Automotive Group's Stock

Shares of Penske Automotive Group were trading at $157.86 as of April 28. Over the last 52-week period, shares are up 2.91%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Insights Shared by Analysts on Penske Automotive Group

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Penske Automotive Group.

Penske Automotive Group has received a total of 4 ratings from analysts, with the consensus rating as Underperform. With an average one-year price target of $163.75, the consensus suggests a potential 3.73% upside.

Understanding Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of CarMax, Murphy USA and Lithia Motors, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for CarMax, with an average 1-year price target of $90.3, suggesting a potential 42.8% downside.
• Analysts currently favor an Outperform trajectory for Murphy USA, with an average 1-year price target of $551.33, suggesting a potential 249.25% upside.
• Analysts currently favor an Neutral trajectory for Lithia Motors, with an average 1-year price target of $368.9, suggesting a potential 133.69% upside.

Peer Metrics Summary

In the peer analysis summary, key metrics for CarMax, Murphy USA and Lithia Motors are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Penske Automotive Group	Underperform	6.16%	$1.26B	4.54%
CarMax	Outperform	6.69%	$667.89M	1.44%
Murphy USA	Outperform	-7.07%	$599M	17.06%
Lithia Motors	Neutral	7.20%	$1.41B	3.12%

Key Takeaway:

Penske Automotive Group ranks in the middle for Consensus rating. It is at the bottom for Revenue Growth. It is at the top for Gross Profit. It is at the bottom for Return on Equity.

About Penske Automotive Group

Penske Automotive Group operates in 19 US states and overseas. It has over 150 US and Puerto Rico light-vehicle stores as well as 210 franchised dealerships overseas, primarily in the United Kingdom but also in Australia, Germany, Italy, and Japan. The company is the third-largest US publicly traded dealership in terms of light-vehicle revenue and sells more than 40 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other segments are service and finance and insurance. The firm's Premier Truck Group owns 45 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 16 used-vehicle stores, mostly in the US and UK under the CarShop (US) and Sytner Select (UK) brands. Penske is based in Bloomfield Hills, Michigan.

Penske Automotive Group: Delving into Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Penske Automotive Group's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 6.16%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Penske Automotive Group's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.06% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Penske Automotive Group's ROE excels beyond industry benchmarks, reaching 4.54%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Penske Automotive Group's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.4% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Penske Automotive Group's debt-to-equity ratio is below the industry average. With a ratio of 1.59, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Penske Automotive Group visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.