Penske Automotive ( (PAG) ) has released its Q4 earnings. Here is a breakdown of the information Penske Automotive presented to its investors.
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Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, is a diversified international transportation services company and one of the world’s leading automotive and commercial truck retailers, operating in several countries including the United States, the United Kingdom, and Australia.
Penske Automotive recently announced its fourth-quarter and full-year 2024 financial results, reporting a record quarterly revenue of $7.7 billion, marking a 6% increase from the prior year. The company also declared its 17th consecutive quarterly dividend increase, showcasing its commitment to returning value to shareholders.
Key highlights from the report include a 23% increase in earnings before taxes for the fourth quarter, reaching $315.2 million, and a 25% rise in earnings per share to $3.54. Notably, the company achieved a 7% increase in same-store retail automotive service and parts revenue and a 9% rise in related gross profit. Despite challenges in the used vehicle segment, the company effectively managed costs, reducing selling, general, and administrative expenses as a percentage of gross profit by 70 basis points.
On a full-year basis, Penske Automotive’s revenue grew by 3% to $30.5 billion. However, net income attributable to common stockholders fell 12.8%, impacted by a goodwill impairment charge in the prior year. The company completed strategic acquisitions and divestitures, adding approximately $2.1 billion in estimated annualized revenue while returning $351.9 million to shareholders through dividends and share repurchases.
Looking ahead, Penske Automotive’s management remains focused on controlling costs and leveraging strategic acquisitions to drive growth. The company’s strong liquidity position and ongoing investments in dealership facilities position it well to navigate the evolving automotive landscape.
