Sep 30, 2022

Penske Q3 2022 Earnings Report

Penske Automotive Group reported a record third quarter revenue, increasing by 7% to $6.9 billion and record earnings per share, increasing by 3% to $4.61.

Key Takeaways

Penske Automotive Group reported a strong third quarter with record revenue of $6.9 billion, a 7% increase year-over-year, and record earnings per share of $4.61, a 3% increase year-over-year. The company's performance was driven by strong demand for new vehicles and increased service and parts revenue.

Revenue increased 7% to $6.9 billion.

Earnings per share increased 3% to $4.61.

Premier Truck Group EBT increased 9% to $52.8 million.

Earnings From Penske Transportation Solutions increased 15% to $135.5 Million.

Total Revenue
$6.92B
Previous year: $6.5B
+6.5%
EPS
$4.61
Previous year: $4.46
+3.4%
Gross Profit
$1.19B
Previous year: $1.17B
+1.8%
Cash and Equivalents
$92.3M
Previous year: $119M
-22.6%
Total Assets
$13.6B
Previous year: $12.7B
+6.8%

Penske

Penske

Penske Revenue by Segment

Penske Revenue by Geographic Location

Forward Guidance

Penske Automotive Group has added approximately $1.3 billion in annualized revenue through acquisitions and open points.

Positive Outlook

  • Strong earnings and cash flow
  • Board of Directors has increased the quarterly dividend four times in 2022 from $0.46 per share to $0.57 per share
  • Repurchased 5.5 million shares of common stock for approximately $584.8 million
  • Acquired 148,440 shares of common stock for $17.2 million from employees
  • Increased the authority delegated to management to repurchase our outstanding securities by $250 million

Challenges Ahead

  • General economic and industry conditions, including the effect of COVID-19 on the global economy
  • The rate of inflation, including its impact on vehicle affordability
  • Changes in interest rates and foreign currency exchange rates
  • Our ability to obtain vehicles and parts from our manufacturers, especially in light of the COVID-19 pandemic and the war in Ukraine, including global shortages in microchip availability or other vehicle components
  • Changes in the retail model either from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of electric vehicles

Revenue & Expenses

Visualization of income flow from segment revenue to net income