It has been about a thirty day period given that the previous earnings report for Penske Automotive Team, Inc. PAG . Shares have missing about four.seven% in that time body.
Will the recent adverse development go on top up to its up coming earnings launch, or is PAG owing for a breakout? Right before we dive into how traders and analysts have reacted as of late, let us choose a rapid look at the most recent earnings report in buy to get a improved handle on the vital catalysts.
Penske Automotive This autumn Earnings Top rated Estimates, Up Y/Y
Penske Automotive recorded altered earnings of $1.01 for each share in fourth-quarter fiscal 2017 in contrast with ninety one cents a 12 months back. The bottom line also surpassed the Zacks Consensus Estimate of $1. Together with tax rewards, the earnings came in at $three.85.
Internet income from continuing operations skyrocketed three hundred% to $330 million in the reported quarter from $eighty two.six million a 12 months back. Excluding tax rewards, the altered income from continuing operations was $86.six million in comparison to $seventy seven.four billion in the prior-12 months quarter.
Revenues rose 10.four% 12 months about 12 months to $5.four billion, beating the Zacks Consensus Estimate of $5.24 billion. In comparison to fourth-quarter fiscal 2016, very same-keep retail unit profits declined 2.seven% to 106,522 units although retail unit profits went up seven% to 119,935. The rise in revenues is pushed by sound U.S. retail automotive operations and a strong professional truck small business.
Gross financial gain elevated 11.1% to $808.three million from $727.three million in fourth-quarter fiscal 2016. Operating income grew 9.four% to $137 million from $one hundred twenty five.2 million in the 12 months-earlier quarter.
Fiscal 2017 Benefits
Penske Automotive reported earnings of $seven.fourteen for each share in fiscal 2017, up from $three.99 attained in fiscal 2016. The Zacks Consensus Estimate for the metric was $four.31.
Money from continuing operations was $613 million from $347 million a 12 months back. Consolidated revenues elevated to $21.four billion from $20.1 billion in fiscal 2016. Furthermore, the best line exceeded the Zacks Consensus Estimate of $21.23 billion.
The firm operates less than 3 reportable segments particularly Retail Automotive, Retail Commercial Trucks and Commercial Autos Australia/Power Systems and Other.
Revenues from Retail Automotive rose to $four.9 billion from the 12 months-back determine of $four.six billion.
Revenues from Retail Commercial Trucks elevated to $308 million from $218 million in the 12 months-back interval.
Revenues from Commercial Autos Australia/Power Systems and Other grew to $148 million from $118 million in the equivalent quarter, previous 12 months.
Penske Automotive experienced cash and cash equivalents of $forty five.seven million as of Dec 31, 2017, up from $24 million as of Dec 31, 2016. Lengthy-phrase financial debt was $2.1 billion as of Dec 31, 2017, up from $1.eight billion as of Dec 31, 2016.
During fiscal 2017, Penske Automotive repurchased 302,000 shares for $twelve.seven million at an common rate of $forty one.95 for each share. As of Dec 31, 2017, the firm experienced excellent share repurchase authorization of about $two hundred million.
How Have Estimates Been Relocating Due to the fact Then?
In the previous thirty day period, traders have witnessed an upward development in fresh new estimates. There have been two revisions larger for the present-day quarter In the previous thirty day period.
Penske Automotive Team, Inc. Price and Consensus
At this time, PAG has a terrific Growth Rating of A, although it is lagging a good deal on the momentum entrance with a D. The inventory was allotted a quality of B on the value side, putting it in the best forty% for this expenditure approach.
All round, the inventory has an combination VGM Rating of A. If you usually are not focused on 1 approach, this rating is the 1 you really should be intrigued in.
Our model scores reveal that the inventory is additional ideal for growth traders than value traders.
Estimates have been trending upward for the inventory and the magnitude of these revisions appears to be like promising. It will come with little shock PAG has a Zacks Rank #2 (Buy). We be expecting an previously mentioned common return from the inventory in the up coming handful of months.
Want the most recent suggestions from Zacks Expenditure Exploration? Today, you can download seven Finest Shares for the Upcoming 30 Days. Click on to get this no cost report
The sights and opinions expressed herein are the sights and opinions of the author and do not automatically mirror all those of Nasdaq, Inc.