Q1 EPS Estimates for Lithia Motors Lifted by Zacks Research

Key Points

• Zacks Research raised its Q1 2027 EPS estimate for Lithia Motors to $9.41 from $9.25, while keeping a Hold rating on the stock.
• Recent results topped expectations: Lithia Motors reported Q1 earnings of $7.34 per share versus the $7.06 consensus, on revenue of $9.27 billion that also slightly beat estimates.
• The company’s board approved a $500 million share buyback authorization, and Lithia also recently increased its quarterly dividend to $0.57 per share.

Lithia Motors, Inc. (NYSE:LAD - Free Report) - Analysts at Zacks Research raised their Q1 2027 earnings estimates for Lithia Motors in a research report issued on Friday, May 29th. Zacks Research analyst Team now expects that the company will post earnings per share of $9.41 for the quarter, up from their prior forecast of $9.25. Zacks Research currently 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' Q2 2027 earnings at $10.09 EPS and Q3 2027 earnings at $10.41 EPS.

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

Several other equities research analysts also recently issued reports on the stock. Barclays lowered their price objective on shares of Lithia Motors from $380.00 to $370.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 7th. Weiss Ratings downgraded shares of Lithia Motors from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, May 4th. JPMorgan Chase & Co. raised their price objective on shares of Lithia Motors from $320.00 to $325.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. Bank of America lowered their price target on shares of Lithia Motors from $335.00 to $320.00 in a report on Monday, April 13th. Finally, UBS Group began coverage on shares of Lithia Motors in a research note on Wednesday. They issued a "buy" rating and a $348.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $365.30.

Lithia Motors Trading Down 0.1%

Shares of Lithia Motors stock opened at $290.59 on Monday. The company's fifty day simple moving average is $271.40 and its 200-day simple moving average is $298.60. The company has a market cap of $6.63 billion, a price-to-earnings ratio of 10.20, a PEG ratio of 0.64 and a beta of 1.26. The company has a current ratio of 0.99, a quick ratio of 0.24 and a debt-to-equity ratio of 1.41. Lithia Motors has a 1 year low of $239.78 and a 1 year high of $360.55.

Institutional Investors Weigh In On Lithia Motors

Several institutional investors and hedge funds have recently made changes to their positions in LAD. Norges Bank acquired a new stake in shares of Lithia Motors in the 4th quarter valued at $125,214,000. River Road Asset Management LLC boosted its stake in shares of Lithia Motors by 33.6% in the 4th quarter. River Road Asset Management LLC now owns 742,677 shares of the company's stock valued at $246,814,000 after purchasing an additional 186,628 shares in the last quarter. Life Cycle Investment Partners Ltd acquired a new stake in shares of Lithia Motors in the 4th quarter valued at $58,409,000. Corient Private Wealth LLC boosted its stake in shares of Lithia Motors by 8,474.0% in the 4th quarter. Corient Private Wealth LLC now owns 107,690 shares of the company's stock valued at $35,789,000 after purchasing an additional 106,434 shares in the last quarter. Finally, Marshall Wace LLP boosted its stake in shares of Lithia Motors by 183.6% in the 4th quarter. Marshall Wace LLP now owns 162,937 shares of the company's stock valued at $54,149,000 after purchasing an additional 105,478 shares in the last quarter.

Insiders Place Their Bets

In other news, Director Richard J. Bailey, Jr. sold 297 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total value of $83,329.29. Following the completion of the transaction, the director owned 760 shares in the company, valued at approximately $213,233.20. This represents a 28.10% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, 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 completion of the transaction, the director owned 1,846 shares of the company's stock, valued at approximately $543,905.44. This represents a 11.72% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 617 shares of company stock valued at $174,966. Corporate insiders own 1.08% of the company's stock.

Lithia Motors announced that its Board of Directors has approved a stock buyback plan on Tuesday, May 26th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 7.9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Lithia Motors Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Stockholders of record on Friday, May 8th were paid a $0.57 dividend. The ex-dividend date was Friday, May 8th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 0.8%. This is a positive change from Lithia Motors's previous quarterly dividend of $0.55. Lithia Motors's dividend payout ratio is currently 8.01%.

About Lithia Motors

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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