Lithia Motors, Inc. (NYSE:LAD) Announces $0.55 Quarterly Dividend

Key Points

• Lithia Motors, Inc. announced a quarterly dividend of $0.55 per share, with shareholders of record on November 7th eligible for the payment on November 21st.
• The company reported earnings of $9.50 per share for the latest quarter, exceeding analysts' estimates of $8.53, and also achieved a revenue of $9.68 billion, up 4.9% year-over-year.
• Lithia Motors has initiated a $750 million share buyback plan, indicating the company's belief that its stock is currently undervalued.

Lithia Motors, Inc. (NYSE:LAD - Get Free Report) announced a quarterly dividend on Wednesday, October 22nd. Shareholders of record on Friday, November 7th will be paid a dividend of 0.55 per share on Friday, November 21st. This represents a c) annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Friday, November 7th.

Lithia Motors has a dividend payout ratio of 5.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Lithia Motors to earn $40.30 per share next year, which means the company should continue to be able to cover its $2.20 annual dividend with an expected future payout ratio of 5.5%.

Lithia Motors Stock Down 1.1%

LAD stock traded down $3.55 during mid-day trading on Wednesday, hitting $308.32. 769,059 shares of the company were exchanged, compared to its average volume of 328,448. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.29 and a current ratio of 1.22. Lithia Motors has a 1-year low of $262.10 and a 1-year high of $405.67. The firm has a market cap of $7.90 billion, a P/E ratio of 9.14, a P/E/G ratio of 0.64 and a beta of 1.28. The firm's 50 day simple moving average is $322.42 and its 200 day simple moving average is $315.96.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its quarterly earnings data on Wednesday, October 22nd. The company reported $9.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $8.53 by $0.97. Lithia Motors had a net margin of 2.39% and a return on equity of 13.21%. The company had revenue of $9.68 billion for the quarter, compared to the consensus estimate of $9.38 billion. During the same period last year, the company earned $8.21 earnings per share. The firm's revenue was up 4.9% compared to the same quarter last year. On average, sell-side analysts predict that Lithia Motors will post 34.45 EPS for the current fiscal year.

Lithia Motors announced that its board has initiated a share buyback plan on Tuesday, August 26th that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 9% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

About Lithia Motors

Lithia Motors, Inc operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company's Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles.

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