Zacks Research Boosts Earnings Estimates for Lithia Motors

Key Points

• Zacks Research raised its FY2026 EPS forecast for Lithia Motors to $35.65 from $35.18, just below the analyst consensus of $35.78. It also projects FY2027 EPS of $39.24.
• Lithia reported quarterly EPS of $10.34, topping the $9.70 consensus, while revenue of $9.95 billion exceeded expectations and rose 2.8% year over year.
• The company increased its quarterly dividend to $0.75 per share from $0.70, equivalent to a 0.9% yield at the article’s stated share price.

Lithia Motors, Inc. (NYSE:LAD - Free Report) - Stock analysts at Zacks Research lifted their FY2026 earnings per share estimates for shares of Lithia Motors in a research note issued on Wednesday, November 4th. Zacks Research analyst Team now forecasts that the company will earn $35.65 per share for the year, up from their prior estimate of $35.18. The consensus estimate for Lithia Motors' current full-year earnings is $35.78 per share. Zacks Research also issued estimates for Lithia Motors' Q4 2026 earnings at $7.94 EPS, Q1 2027 earnings at $8.98 EPS, Q2 2027 earnings at $10.10 EPS, Q3 2027 earnings at $10.41 EPS, Q4 2027 earnings at $9.76 EPS and FY2027 earnings at $39.24 EPS.

Several other analysts also recently commented on LAD. Bank of America lifted their target price on shares of Lithia Motors from $350.00 to $417.00 and gave the stock a "buy" rating in a report on Thursday, July 9th. Morgan Stanley lowered their price target on shares of Lithia Motors from $358.00 to $310.00 and set an "equal weight" rating on the stock in a report on Monday, October 5th. Jefferies Financial Group restated a "buy" rating and set a $490.00 price objective on shares of Lithia Motors in a research report on Thursday, July 30th. JPMorgan Chase & Co. reduced their price objective on Lithia Motors from $320.00 to $315.00 and set a "neutral" rating for the company in a report on Thursday, October 22nd. Finally, Citigroup reduced their price objective on Lithia Motors from $409.00 to $386.00 and set a "buy" rating for the company in a report on Friday, October 23rd. Six equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $393.80.

Lithia Motors Price Performance

Shares of LAD opened at $316.95 on Friday. The firm has a market capitalization of $6.97 billion, a PE ratio of 9.12, a PEG ratio of 0.73 and a beta of 1.30. The company's 50-day moving average is $317.53 and its 200-day moving average is $307.44. Lithia Motors has a fifty-two week low of $239.78 and a fifty-two week high of $439.49. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.00 and a quick ratio of 0.21.

Lithia Motors (NYSE:LAD - Get Free Report) last released its quarterly earnings data on Wednesday, October 21st. The company reported $10.34 EPS for the quarter, topping analysts' consensus estimates of $9.70 by $0.64. Lithia Motors had a net margin of 2.06% and a return on equity of 12.05%. The firm had revenue of $9.95 billion during the quarter, compared to analysts' expectations of $9.75 billion. During the same period in the previous year, the business posted $9.50 earnings per share. The company's revenue for the quarter was up 2.8% compared to the same quarter last year.

Hedge Funds Weigh In On Lithia Motors

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Fifth Third Bancorp grew its position in Lithia Motors by 39.8% in the third quarter. Fifth Third Bancorp now owns 14,656 shares of the company's stock valued at $4,277,000 after acquiring an additional 4,176 shares during the last quarter. Lido Advisors LLC acquired a new position in Lithia Motors during the third quarter worth about $259,000. New York Life Investment Management LLC raised its stake in Lithia Motors by 2.7% during the third quarter. New York Life Investment Management LLC now owns 3,199 shares of the company's stock worth $934,000 after acquiring an additional 84 shares in the last quarter. Fulcrum Asset Management LLP lifted its holdings in shares of Lithia Motors by 417.6% in the third quarter. Fulcrum Asset Management LLP now owns 5,197 shares of the company's stock worth $1,503,000 after acquiring an additional 4,193 shares during the last quarter. Finally, Brighton Jones LLC bought a new position in shares of Lithia Motors in the third quarter worth about $250,000.

Insider Activity

In related news, Director Stacy Congdon sold 75 shares of the stock in a transaction that occurred on 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 of the company's stock, valued at $852,679. This represents a 3.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.08% of the company's stock.

Lithia Motors Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 20th. Investors of record on Friday, November 6th will be paid a $0.75 dividend. This represents a $3.00 annualized dividend and a dividend yield of 0.9%. This is an increase from Lithia Motors's previous quarterly dividend of $0.70. The ex-dividend date is Friday, November 6th. Lithia Motors's dividend payout ratio is presently 8.63%.

About Lithia Motors

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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