Penske Automotive Group (PAG) Misses Q1 EPS by 7c, Revenues Miss, 1Q Same-Store Retail Revs. Down 12%

Penske Automotive Group (NYSE: PAG) reported Q1 EPS of $0.64, $0.07 worse than the analyst estimate of $0.71. Revenue for the quarter came in at $5 billion versus the consensus estimate of $5.24 billion.

First Quarter 2020 Operational Information

• Same-store retail revenue decreased 12%
• Same-store new vehicle gross/unit $3,211, flat
• Same-store used vehicle gross/unit $1,375, +$48
• Same-store finance & insurance per unit $1,363, +$87
• Same-store variable gross profit per unit $3,493, +$86

Chairman Roger Penske said, "In response to the COVID-19 crisis, we implemented a hiring freeze, initiated expense reductions, deferred approximately $150 million in capital expenditures, and furloughed approximately 15,000 employees representing 57% of the worldwide workforce. In addition, we implemented significant pay cuts including a temporary 100% reduction in salary for the CEO and President, a 25% reduction in salary for our other executive officers, and the Board of Directors has waived cash compensation through the end of September 2020. We believe the actions taken will help us overcome the challenges of the COVID-19 pandemic and are encouraged by the improving conditions we are starting to see across many of our markets. We will continue to actively monitor the situation and adjust our business model to adapt to the changes presented by COVID-19." Penske continued, "I am encouraged by the many positive actions taken by our team to address the changing marketplace. Our digital initiatives continue to grow our online sales. Further, we have adapted sales processes to facilitate a greater on-line focus, video messaging, curb-side or home delivery, pick-up and drop-off for service customers, and remote F&I through docuPAD®. As a result, we have seen business improve from week to week, as we believe customers have become more comfortable with these new processes.

For earnings history and earnings-related data on Penske Automotive Group (PAG) click here.

You May Also Be Interested In

• Bristol-Myers Squibb (BMY) stock slips despite earnings beat
• First Resource Bank (FRSB) Tops Q1 EPS by 43c
• Deutsche Bank (DB) Tops Q1 EPS by 1c