Penske Automotive Group, Inc. (NYSE:PAG) shares are trading slightly higher on Wednesday after the company reported first-quarter results.

Penske reported adjusted earnings per share of $3.39, beating the street view of $3.27. Quarterly sales of $7.60 billion (+2% year over year) missed the analyst consensus estimate of $7.69 billion.

The company said its same-store retail automotive revenue was up 2%, while same-store retail automotive gross profit grew by 3%.

In the quarter under review, same-store retail automotive service and parts revenue increased by 4%, and the related gross profit soared by 6%.

Quarterly gross profit jumped 1.9% year over year to $1.269 billion, while the gross margin remained flat at 16.7%.

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Operating income slipped 3.7% to $315.5 million, with operating margins contracting to 4.1% from 4.4% a year ago.

 “We continue to monitor the potential impact to our business from tariffs,” said Chair Roger Penske.

For the three months ended March 31, the total number of new units delivered increased by 6%. Used units delivered decreased by 16%, consisting of a 2% increase in the U.S. and a 28% decrease internationally.

Penske exited the quarter with cash and equivalents worth $118.4 million and inventories worth $4.500 billion.

Price Action: PAG shares are trading higher by 0.17% to $157.86 at last check Wednesday.

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