Penske Automotive Group's stock soared 7.34% during intraday trading on Wednesday, following the release of its first-quarter financial results.
The surge was driven by the company reporting better-than-expected quarterly earnings and revenue. Penske posted adjusted earnings per share of $3.05, surpassing the analyst consensus estimate of $2.92. Revenue for the quarter reached $7.86 billion, also beating expectations of $7.71 billion.
Key drivers highlighted by the company included record retail automotive service and parts revenue, which increased 4.6% to $864 million, with same-store gross profit in this segment rising 5.7%. The company also completed acquisitions representing an estimated $450 million in annualized revenue and repurchased 170,393 shares during the quarter. Chair Roger Penske expressed encouragement regarding improving trends in the trucking market.