Penske Automotive's stock slides premarket after profit miss amid 'challenging' used car market

Penske Automotive Group Inc.'s stock (PAG) fell 2.5% in early trade Wednesday, after the used and new car dealer missed profit expectations for the third quarter. Bloomfield Hills, Michigan-based Penske posted net income of $263.4 million, or $3.92 a share, for the quarter, down from $340.1 million, or $4.61 a share, in the year-earlier period. Revenue rose 8% to $7.448 billion from $6.921 billion a year ago. The FactSet consensus was for EPS of $4.04 and revenue of $7.276 billion. The numbers included about $6.2 million of costs, including insurance deductibles relating to approximately 750 hail-damaged vehicles, or $27 million in inventory, during severe storms. "The new vehicle market remains solid while used vehicle supply and affordability remains challenging,": CEO Roger Penske said in a statement. Retail automotive same-store revenue rose 9% as new vehicle revenue rose 15%, used vehicles were up 4%, finance and insurance were flat and service and parts were up 9%. The stock has gained 25% in the year to date, while the S&P 500 has gained 10.6%.

-Ciara Linnane

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

10-25-23 0741ET

Copyright (c) 2023 Dow Jones & Company, Inc.