Zacks Research Expects Reduced Earnings for Lithia Motors

Key Points

• Zacks Research cut its Q1 2028 EPS forecast for Lithia Motors to $10.54 from $11.92; it projects full-year 2028 EPS of $44.87.
• Lithia’s latest quarter beat expectations, with EPS of $10.34 versus $9.70 forecast and revenue of $9.95 billion, up 2.8% year over year.
• The company raised its quarterly dividend to $0.75 per share from $0.70, equivalent to an annualized dividend of $3.00 and a 1.0% yield.

Lithia Motors, Inc. (NYSE:LAD - Free Report) - Zacks Research lowered their Q1 2028 earnings estimates for Lithia Motors in a note issued to investors on Wednesday, November 4th. Zacks Research analyst Team now forecasts that the company will earn $10.54 per share for the quarter, down from their prior estimate of $11.92. The consensus estimate for Lithia Motors' current full-year earnings is $35.83 per share. Zacks Research also issued estimates for Lithia Motors' Q2 2028 earnings at $10.91 EPS, Q3 2028 earnings at $11.09 EPS and FY2028 earnings at $44.87 EPS.

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

A number of other equities analysts have also commented on the stock. Wall Street Zen raised shares of Lithia Motors from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Weiss Ratings lowered Lithia Motors from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, October 14th. Morgan Stanley dropped their price objective on Lithia Motors from $358.00 to $310.00 and set an "equal weight" rating on the stock in a research note on Monday, October 5th. Benchmark raised their price objective on Lithia Motors from $400.00 to $475.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Finally, UBS Group reduced their price objective on Lithia Motors from $335.00 to $305.00 and set a "neutral" rating on the stock in a report on Thursday, October 22nd. Six investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $393.80.

Lithia Motors Price Performance

Shares of LAD stock opened at $308.90 on Monday. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.00 and a quick ratio of 0.21. The company has a market capitalization of $6.79 billion, a P/E ratio of 8.89, a P/E/G ratio of 0.71 and a beta of 1.30. The company's 50-day simple moving average is $316.27 and its two-hundred day simple moving average is $307.35. Lithia Motors has a one year low of $239.78 and a one year high of $439.49.

Institutional Investors Weigh In On Lithia Motors

Several large investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of Lithia Motors in the 2nd quarter worth $696,482,000. Madison Asset Management LLC purchased a new stake in shares of Lithia Motors during the 2nd quarter worth $66,988,000. Bank of New York Mellon Corp purchased a new stake in shares of Lithia Motors during the 2nd quarter worth $63,015,000. The Manufacturers Life Insurance Company bought a new stake in Lithia Motors during the second quarter valued at about $42,718,000. Finally, Bank of America Corp DE bought a new stake in Lithia Motors during the second quarter valued at about $21,371,000.

Insiders Place Their Bets

In other Lithia Motors news, Director Stacy Congdon sold 75 shares of the stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $370.73, for a total transaction of $27,804.75. Following the transaction, the director directly 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 legal filing 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 currently owned by company insiders.

Lithia Motors Increases Dividend

The firm also recently disclosed 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 dividend on an annualized basis and a yield of 1.0%. This is a boost from Lithia Motors's previous quarterly dividend of $0.70. The ex-dividend date of this dividend is Friday, November 6th. Lithia Motors's payout ratio is currently 8.63%.

About Lithia Motors

Lithia Motors, Inc is an automotive retailer that sells new and pre-owned vehicles through a network of franchised dealerships. Its dealerships represent a range of vehicle manufacturers and also offer related products and services, including parts, maintenance and repairs, and vehicle financing and insurance options.

The company traces its roots to a single dealership established in Ashland, Oregon, in 1946. It has since expanded its retail operations across the United States, Canada and the United Kingdom.

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