Penske Automotive's Q1 Performance Exceeds Expectations Despite Inventory Challenges & Cost Pressures

Penske Automotive Group Inc (NYSE:PAG) reported first-quarter FY23 sales growth of 5.2% year-on-year to $7.34 billion, beating the consensus of $6.99 billion.
Foreign currency exchange negatively impacted revenue by $294.2 million. Excluding the impact of foreign currency exchange, revenue would have increased by 9%.
Total retail automotive revenue increased 4% to $6.3 billion, including a 2% increase on a same-store basis.
The company's gross profit increased 1.7% Y/Y to $1.3 billion, and the gross margin contracted 60 basis points Y/Y to 17.1%.
Selling, general and administrative expenses rose 5.9% Y/Y to $844.9 million.
The operating margin was 5.1%, and operating income for the quarter fell 7.1% to $373.5 million.
EBITDA for the quarter decreased 15.5% Y/Y to $461.6 million.
EPS of $4.31 beat the analyst consensus of $4.13.
The company held $100.6 million in cash and equivalents as of March 31, 2023.
The company repurchased 0.9 million shares for $110.2 million in the quarter.
Price Action: PAG shares are trading higher by 0.62% at $137.75 on the last check Wednesday.