Lithia Motors (NYSE:LAD) Releases Quarterly Earnings Results, Beats Expectations By $0.64 EPS

Key Points

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Lithia Motors (NYSE:LAD - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $10.34 earnings per share for the quarter, topping the consensus estimate of $9.70 by $0.64, Zacks reports. The company had revenue of $9.95 billion for the quarter, compared to analysts' expectations of $9.75 billion. Lithia Motors had a net margin of 1.88% and a return on equity of 12.16%.

Lithia Motors Stock Performance

LAD stock opened at $299.93 on Wednesday. The stock has a 50-day moving average price of $335.78 and a 200-day moving average price of $314.99. Lithia Motors has a 1-year low of $239.78 and a 1-year high of $439.49. The company has a current ratio of 1.00, a quick ratio of 0.21 and a debt-to-equity ratio of 1.46. The firm has a market cap of $6.59 billion, a PE ratio of 9.95, a price-to-earnings-growth ratio of 0.68 and a beta of 1.27.

Lithia Motors Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 21st. Shareholders of record on Friday, August 7th were issued a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Friday, August 7th. This is an increase from Lithia Motors's previous quarterly dividend of $0.57. Lithia Motors's dividend payout ratio (DPR) is 9.29%.

Insider Activity

In related news, Director Stacy Congdon sold 75 shares of the company's stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $370.73, for a total transaction of $27,804.75. Following the sale, the director owned 2,300 shares in the company, valued at $852,679. This represents a 3.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.08% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

LAD has been the topic of a number of analyst reports. JPMorgan Chase & Co. reduced their price target on Lithia Motors from $340.00 to $320.00 and set a "neutral" rating on the stock in a research report on Tuesday, October 6th. UBS Group cut their price objective on Lithia Motors from $440.00 to $335.00 and set a "neutral" rating on the stock in a research note on Wednesday, October 7th. Morgan Stanley reduced their target price on Lithia Motors from $358.00 to $310.00 and set an "equal weight" rating on the stock in a report on Monday, October 5th. Wall Street Zen raised shares of Lithia Motors from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Citigroup decreased their target price on shares of Lithia Motors from $455.00 to $409.00 and set a "buy" rating for the company in a research report on Tuesday, September 22nd. Six analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, Lithia Motors has a consensus rating of "Moderate Buy" and an average target price of $402.60.

Lithia Motors News Summary

Here are the key news stories impacting Lithia Motors this week:

• Positive Sentiment: Third-quarter revenue reached approximately $9.9 billion to $9.95 billion, above the FactSet consensus estimate of $9.75 billion. Lithia & Driveway Q3 Revenue Earnings Flash
• Positive Sentiment: Adjusted earnings per share were $10.34, beating the $9.70 consensus by $0.64. Diluted EPS was $13.22, up 54% year over year, while adjusted diluted EPS increased 9%. Lithia & Driveway Q3 Adjusted EPS Earnings Flash
• Positive Sentiment: Used-vehicle retail gross profit per unit increased 11% year over year, while aftersales gross profit rose 2.4% and same-store aftersales gross margin expanded 100 basis points to 59.5%. These trends indicate continued strength in key higher-margin operations. Lithia & Driveway Third Quarter Results
• Positive Sentiment: Financing Operations income climbed 69% to $32.3 million, supported by record originations of $937 million and an 18.3% penetration rate.
• Positive Sentiment: Lithia repurchased $85 million of stock during the quarter—1.1% of shares outstanding—and raised its quarterly dividend by 7%, enhancing shareholder returns.

Lithia Motors Company Profile

Lithia Motors, Inc is an automotive retailer headquartered in Medford, Oregon. Operating under the Lithia & Driveway name, the company sells new and used vehicles through a network of franchised dealerships and digital retail channels. Its dealerships represent a broad range of domestic, Asian and European automotive brands.

In addition to vehicle sales, Lithia provides related services including vehicle financing and insurance products, parts and maintenance, collision repair, and other after-sales support.

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