Brokers Set Expectations for Lithia Motors FY2027 Earnings

Key Points

• Zacks Research lifted its FY2027 EPS estimate for Lithia Motors to $39.54 from $37.69, and it also projected FY2028 EPS of $49.98. The firm kept a Hold rating on the stock.
• Lithia Motors beat quarterly expectations in its latest report, posting EPS of $7.34 versus $7.06 expected and revenue of $9.27 billion versus $9.22 billion expected. Revenue rose 1.0% year over year.
• The company raised its quarterly dividend to $0.57 per share and authorized a $500 million share buyback, equal to up to 7.9% of outstanding shares. Analysts currently rate the stock a Moderate Buy with an average price target of $365.30.

Lithia Motors, Inc. (NYSE:LAD - Free Report) - Zacks Research raised their FY2027 EPS estimates for Lithia Motors in a report issued on Friday, May 29th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $39.54 for the year, up from their prior forecast of $37.69. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Lithia Motors' current full-year earnings is $34.26 per share. Zacks Research also issued estimates for Lithia Motors' Q4 2027 earnings at $9.63 EPS, Q1 2028 earnings at $12.06 EPS and FY2028 earnings at $49.98 EPS.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The company reported $7.34 earnings per share for the quarter, topping analysts' consensus estimates of $7.06 by $0.28. The company had revenue of $9.27 billion for the quarter, compared to the consensus estimate of $9.22 billion. Lithia Motors had a net margin of 1.88% and a return on equity of 12.49%. Lithia Motors's revenue was up 1.0% on a year-over-year basis. During the same quarter last year, the firm posted $7.66 earnings per share.

LAD has been the topic of a number of other research reports. Wall Street Zen raised shares of Lithia Motors from a "sell" rating to a "hold" rating in a research note on Saturday. Wells Fargo & Company increased their price objective on shares of Lithia Motors from $293.00 to $305.00 and gave the stock an "equal weight" rating in a research report on Thursday, April 30th. JPMorgan Chase & Co. increased their price objective on shares of Lithia Motors from $320.00 to $325.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Weiss Ratings lowered shares of Lithia Motors from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 4th. Finally, UBS Group assumed coverage on shares of Lithia Motors in a research report on Wednesday, May 27th. They issued a "buy" rating and a $348.00 price objective for the company. Seven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $365.30.

Lithia Motors Stock Performance

NYSE:LAD opened at $293.54 on Tuesday. The company has a quick ratio of 0.24, a current ratio of 0.99 and a debt-to-equity ratio of 1.41. The company has a market cap of $6.69 billion, a P/E ratio of 10.31, a P/E/G ratio of 0.64 and a beta of 1.26. Lithia Motors has a fifty-two week low of $239.78 and a fifty-two week high of $360.55. The firm's 50 day moving average is $272.31 and its two-hundred day moving average is $298.60.

Institutional Trading of Lithia Motors

Several hedge funds have recently bought and sold shares of LAD. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Lithia Motors by 13.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,474 shares of the company's stock valued at $2,487,000 after purchasing an additional 1,032 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in Lithia Motors by 67.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 113,346 shares of the company's stock valued at $33,272,000 after buying an additional 45,716 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Lithia Motors by 16.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 93,170 shares of the company's stock valued at $27,349,000 after buying an additional 13,407 shares during the period. Federated Hermes Inc. increased its stake in Lithia Motors by 16.2% during the 2nd quarter. Federated Hermes Inc. now owns 2,430 shares of the company's stock valued at $821,000 after buying an additional 338 shares during the period. Finally, WINTON GROUP Ltd acquired a new position in Lithia Motors during the 2nd quarter valued at about $651,000.

Insiders Place Their Bets

In other Lithia Motors news, Director Shauna Mcintyre sold 245 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $294.64, for a total transaction of $72,186.80. Following the transaction, the director directly owned 1,846 shares in the company, valued at $543,905.44. This represents a 11.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Richard J. Bailey, Jr. sold 297 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $280.57, for a total transaction of $83,329.29. Following the completion of the transaction, the director owned 760 shares in the company, valued at approximately $213,233.20. The trade was a 28.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 617 shares of company stock worth $174,966 over the last quarter. 1.08% of the stock is currently owned by insiders.

Lithia Motors Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Friday, May 8th were issued a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Friday, May 8th. This is a positive change from Lithia Motors's previous quarterly dividend of $0.55. Lithia Motors's dividend payout ratio (DPR) is 8.01%.

Lithia Motors declared that its board has approved a stock buyback plan on Tuesday, May 26th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 7.9% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Lithia Motors Company Profile

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company's core business activities include vehicle sales, financing, insurance, parts and service.

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