By Rob Curran
Penske Automotive's first-quarter net income rose as strength in auto sales and services revenue offset weakness in commercial-truck demand.
The Bloomfield, Mich., operator of dealerships, truck rental and other operations posted earnings of $244.3 million, or $3.66 a share, up from $215.2 million, or $3.21 a share, a year earlier.
Excluding certain one-off items, Penske logged adjusted earnings of $3.39 a share, topping the mean analyst estimate of $3.28 a share, according to FactSet.
Same-store sales, or sales in stores open for a year or more, for its auto retail dealerships rose 2%. Same-store sales in the commercial-truck category fell 3%. Same-store sales at auto parts and services locations were up 4%.
Among rivals, dealership chain Sonic Automotive recently pulled its growth projections and warned about upward pressure on prices from tariffs, while commercial truck rental firm Ryder System cut its earnings forecast, citing an economic slowdown.
Revenue rose 2.1% to $7.6 billion, short of the average Wall Street target of $7.73 billion.
"The diversification of our gross profit across new and used vehicles, service and parts, and finance and insurance, coupled with our highly variable cost structure, provide us with opportunities to flex our business to meet the changing automotive landscape," Chair Roger Penske said in a statement.
Write to Rob Curran at rob.curran@wsj.com
(END) Dow Jones Newswires
April 30, 2025 07:19 ET (11:19 GMT)
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