Penske Automotive Down 5% Despite Better Than Expected Earnings

Penske Automotive Group PAG is currently trading lower on the session following its Q4 earnings announcement. The company reported continuing operations EPS of $0.47 vs $0.40 estimate and revenues of $2.96 billion vs $2.97 billion estimate. Chairman Roger Penske stated, “Our fourth quarter results continue to demonstrate the strength of the automotive retail model and the benefit from our premium/luxury brand mix in both the U.S. and international markets. We produced another outstanding quarter of profitability while generating same-store revenue increases in each area of our business. I am extremely pleased with the continued strong performance of our used vehicle business, which increased same-store retail unit sales by 16% and same-store retail revenue by 14%, and our service and parts operations gross margin which added 120 basis points to 57.3%.” Penske Automotive is currently trading at $23.42, a loss of $1.35 or 5.45%.