Spotting Winners: Penske Automotive Group (NYSE:PAG) And Vehicle Retailer Stocks In Q4

Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Penske Automotive Group (NYSE:PAG) and its peers.

Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.

The 5 vehicle retailer stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.8% since the latest earnings results.

Penske Automotive Group (NYSE:PAG)

With a diverse global network spanning the US, UK, Canada, Germany, Italy, Japan, and Australia, Penske Automotive Group (NYSE:PAG) operates automotive and commercial truck dealerships across the globe, selling new and used vehicles while providing service, parts, and financing options.

Penske Automotive Group reported revenues of $7.77 billion, flat year on year. This print exceeded analysts’ expectations by 2.2%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.

Penske Automotive Group pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 2.8% since reporting and currently trades at $156.02.

Read our full report on Penske Automotive Group here, it’s free.

Best Q4: CarMax (NYSE:KMX)

Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE:KMX) is the largest automotive retailer in the United States.

CarMax reported revenues of $5.79 billion, down 6.9% year on year, outperforming analysts’ expectations by 3.3%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

CarMax achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $42.21.

Is now the time to buy CarMax? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Camping World (NYSE:CWH)

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE:CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Camping World reported revenues of $1.17 billion, down 2.6% year on year, exceeding analysts’ expectations by 1.2%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.

As expected, the stock is down 31.3% since the results and currently trades at $7.45.

Read our full analysis of Camping World’s results here.

AutoNation (NYSE:AN)

With a vast network of over 300 locations strategically concentrated in America's Sunbelt region, AutoNation (NYSE:AN) operates one of America's largest networks of automotive dealerships, selling new and used vehicles, parts, and services across multiple brands.

AutoNation reported revenues of $6.93 billion, down 3.9% year on year. This result lagged analysts' expectations by 3.6%. It was a softer quarter as it also produced a significant miss of analysts’ EBITDA estimates and a miss of analysts’ revenue estimates.

AutoNation had the weakest performance against analyst estimates among its peers. The stock is down 4.6% since reporting and currently trades at $194.68.

Read our full, actionable report on AutoNation here, it’s free.

Lithia (NYSE:LAD)

With a strong presence in the Western US, Lithia Motors (NYSE:LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.

Lithia reported revenues of $9.20 billion, flat year on year. This print came in 0.6% below analysts' expectations. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.

The stock is down 20.5% since reporting and currently trades at $259.50.

Read our full, actionable report on Lithia here, it’s free.

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