Penske Automotive Posts Q4 2.2% Revenue Gain, Raises Dividend 1.4%
Penske Automotive reported Q4 adjusted EPS of $2.91 versus a $3.10 consensus while sales rose 2.2% to $7.769 billion. Net income fell to $186.1 million and the company raised its quarterly dividend 1.4% to $1.40 per share.
1. Q4 Financial Results
Penske Automotive reported adjusted Q4 EPS of $2.91 versus a $3.10 consensus and generated $7.769 billion in sales, up from $7.604 billion a year earlier. Net income attributable to common stockholders declined to $186.1 million from $249.3 million.
2. Delivery and Segment Trends
New vehicle deliveries fell 10%, with U.S. volumes down 8% and international down 14%. Retail commercial truck dealerships sold 3,789 units, driving $725.4 million in revenue and $33.8 million in pre-tax earnings.
3. Strategic Actions and Liquidity
The company completed divestiture of 23 non-strategic dealerships over two years and added two Toyota and four Lexus franchises. Liquidity stood at $1.6 billion, including $65 million in cash and $1.5 billion under revolving credit agreements.
4. Dividend Increase and Shareholder Returns
The board approved a 1.4% increase in the quarterly dividend to $1.40 per share, marking 21 consecutive quarterly hikes and yielding 3.4% on a forward basis.