Penske Automotive (PAG) got here out with quarterly earnings of $3.19 per share, lacking the Zacks Consensus Estimate of $3.35 per share. This compares to earnings of $4.31 per share a 12 months in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of -4.78%. 1 / 4 in the past, it was anticipated that this auto dealership chain would put up earnings of $3.66 per share when it truly produced earnings of $3.45, delivering a shock of -5.74%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.
Penske
The sustainability of the inventory’s quick value motion based mostly on the recently-released numbers and future earnings expectations will principally rely on administration’s commentary on the earnings name.
Penske shares have misplaced about 3.2% for the reason that starting of the 12 months versus the S&P 500’s acquire of seven.3%.
What’s Subsequent for Penske?
Whereas Penske has underperformed the market up to now this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist traders tackle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.
Empirical analysis reveals a robust correlation between near-term inventory actions and tendencies in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a formidable monitor report of harnessing the ability of earnings estimate revisions.
Forward of this earnings release, the estimate revisions development for Penske: unfavorable. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You’ll be able to see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It is going to be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $3.50 on $7.57 billion in revenues for the approaching quarter and $13.80 on $29.91 billion in revenues for the present fiscal 12 months.
Buyers needs to be conscious of the truth that the outlook for the trade can have a fabric influence on the efficiency of the inventory as nicely. When it comes to the Zacks Business Rank, Automotive – Retail and Complete Gross sales is presently within the backside 13% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
Titan Equipment (TITN), one other inventory in the identical trade, has but to report outcomes for the quarter ended April 2024.
This agriculture and development tools vendor is predicted to put up quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of -43.7%. The consensus EPS estimate for the quarter has been revised 6.3% decrease over the past 30 days to the present stage.
Titan Equipment’s revenues are anticipated to be $664.18 million, up 16.6% from the year-ago quarter.
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Free: See Our Top Stock And 4 Runners Up
Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
Titan Machinery Inc. (TITN) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
