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Dec 31, 2023
Penske Q4 2023 Earnings Report
Penske Automotive Group reported Q4 2023 results with a 4% revenue increase to $7.3 billion, but profitability was impacted by a non-cash impairment charge, lower equity earnings from PTS, and higher interest expense.
Key Takeaways
Penske Automotive Group's Q4 2023 revenue increased by 4% to $7.3 billion. However, income from continuing operations attributable to common stockholders decreased by 36% to $190.7 million, with earnings per share decreasing by 33% to $2.84. The results were impacted by a goodwill impairment charge, lower equity earnings from PTS, and higher interest expense.
Fourth quarter revenue increased 4% to $7.3 billion.
Retail automotive same-store revenue increased 4%, including a 7% increase in service & parts.
Profitability was impacted by a non-cash impairment charge, lower equity earnings from PTS, and higher interest expense.
Total new and used units delivered increased 8% to nearly 117,400.
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
Based on the Company's strong earnings and cash flow, the Board of Directors has consistently increased the Company's quarterly dividend, most recently approving a 10% increase in the quarterly dividend to $0.87 per share which is payable on March 1, 2024 to shareholders of record as of February 15, 2024.
Positive Outlook
- Demand for new vehicles remains strong.
- Continued growth in service and parts gross profit.
- Continued focus on controlling costs.
- Sequential performance of retail automotive new and used vehicle gross profit per unit retailed only declined marginally from the third to fourth quarter of 2023.
- Diversified business achieved the third best year of profitability of all-time.
Challenges Ahead
- Used vehicle supply and affordability remains challenging.
- Higher interest costs negatively impacted income.
- Lower equity earnings from PTS negatively impacted income.
- Increased operating and interest costs impacted PTS’ profitability.
- Lower rental revenue and utilization impacted PTS’ profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income