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Mar 31, 2023
Penske Q1 2023 Earnings Report
Penske Automotive Group reported record revenue and strong same-store service & parts revenue growth in Q1 2023.
Key Takeaways
Penske Automotive Group reported a strong first quarter in 2023, with record revenue increasing by 5% to $7.3 billion. Same-store service and parts revenue increased by 10% in retail automotive and 11% in retail commercial trucks. Net income was $298 million, with earnings per share of $4.31. The company also repurchased 0.9 million shares of common stock for $110.2 million.
Revenue increased 5% to a record $7.3 billion.
Net income attributable to common stockholders decreased 19% to $298.3 million.
Earnings per share decreased 9% to $4.31.
Same-store service & parts revenue increased 10% in retail automotive and 11% in retail commercial trucks.
Penske
Penske
Penske Revenue by Segment
Penske Revenue by Geographic Location
Revenue by Segment
New Vehicles Revenue
CapyFin.comUsed Vehicles Revenue
CapyFin.comFinance & Insurance Revenue
CapyFin.comService & Parts Revenue
CapyFin.comFleet & Wholesale Revenue
CapyFin.comTruck - New Vehicles Revenue
CapyFin.comTruck - Used Vehicles Revenue
CapyFin.comTruck - F&I Revenue
CapyFin.comTruck - Service & Parts Revenue
CapyFin.comCommercial Dist. & Other Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comU.K. Revenue
CapyFin.comOther International Revenue
CapyFin.com Forward Guidance
Penske Automotive Group's financial performance is subject to various risks and uncertainties, including macro-economic conditions, supply chain disruptions, changes in the retail model, and regulatory risks.
Positive Outlook
- Automotive retail and commercial truck retail demand for new vehicles remains strong
- Same store service & parts revenue increased 14% from retail automotive operations (excluding changes in foreign currency exchange)
- Same store service & parts revenue increased 11% from commercial truck operations
- Strong expense control produced a ratio of SG&A to gross profit of 67.5%
- SG&A to gross profit declined sequentially by 140 basis points when comparing the first quarter of 2023 to the fourth quarter of 2022
Challenges Ahead
- Higher interest costs
- Inventory challenges
- Other inflationary cost pressures
- Foreign currency exchange negatively impacted revenue by $294.2 million
- Equity in Earnings of Affiliates decreased by 31.4%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income