Penske Q3 Revenue Up 5% to $8.4B; EPS Slips to $3.36 as $212 Take-Private Looms
PAG sits 51% above its 52-week low of $140.12.
Summary
Penske posted Q3 revenue of $8.4 billion, up 5% from $8.1 billion a year ago, but income before taxes slipped to $302.0 million and EPS fell to $3.36 from $3.41. Results include $6.3 million of costs ($0.07 per share) tied to the pending take-private. Retail automotive gross margin compressed 40 bps to 15.7% as new-vehicle gross profit per unit fell to $4,524 from $4,642, while retail commercial truck revenue jumped 22% to $1.1 billion on 6,779 units. The company skipped its earnings call because of the $212.00-per-share cash merger with Penske Corporation and Mitsui, announced October 15, which values the company at roughly $16.3 billion enterprise value and is expected to close in Q1 2027. With the merger price fixed, the operating print matters less for the stock than deal completion; watch the shareholder vote and regulatory approvals for the Q1 2027 close.
At the time of this announcement, PAG was trading at $212.15 on NYSE in the Trade & Services sector, with a market capitalization of approximately $13.9B. The 52-week trading range was $140.12 to $227.00. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: PR Newswire.