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Sep 30, 2020
Penske Q3 2020 Earnings Report
Penske Automotive Group reported record results for the third quarter of 2020, marking the most profitable quarter in company history.
Key Takeaways
Penske Automotive Group announced record results for Q3 2020, with income from continuing operations attributable to common shareholders reaching $246.5 million, or $3.07 per share. Revenue remained flat at $6 billion. These results were driven by same-store retail automotive revenue and margin expansion, coupled with expense reductions.
Retail automotive same-store revenue increased 3.6%.
Retail automotive earnings before taxes increased 170%.
Retail automotive same-store variable gross profit per unit retailed increased 29%.
Total gross margin increased 140 basis points to 16.0%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Penske Automotive Group is expecting continued positive performance, with plans to expand their Used Vehicle SuperCenters.
Positive Outlook
- Strong cash flow has allowed the company to significantly reduce long-term debt.
- Lengthened maturities.
- Reduced future annual interest expense by an estimated $17 million.
- Company expects to open two additional Used Vehicle SuperCenters in the next 90 days.
- Four additional sites are under development which would increase the current footprint of SuperCenters by 40%.
Challenges Ahead
- The duration, severity and resolution of the COVID-19 pandemic.
- Government imposed restrictions on our business in light of COVID-19 or otherwise.
- Economic conditions generally.
- Conditions in the credit markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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