Analyst Note| David Whiston, CFA, CPA, CFE |
We suspected that Penske’s large United Kingdom exposure hurt the firm’s second-quarter results but once the U.K. reopened from the pandemic Penske could have a great quarter. Penske reported an all-time record quarterly profit of any quarter in its third-quarter results. Adjusted diluted EPS more than doubled year over year to $2.87 from $1.42 and easily beast Refinitiv’s consensus of $1.65. The stock on Oct. 22 closed down about 2%, however, which we think is more due to weakness in all dealer stocks that day than anything specific to Penske’s results.