Q2 EPS Estimates for Lithia Motors Reduced by Zacks Research

Key Points

• Zacks Research cut its Q2 2026 EPS estimate for Lithia Motors to $8.87 from $9.04 and kept a Hold rating on the stock.
• Lithia Motors recently beat first-quarter expectations, reporting $7.34 EPS versus $7.06 expected, on revenue of $9.27 billion, slightly above estimates.
• The company also raised its quarterly dividend to $0.57 per share from $0.55, while analysts overall still rate the stock Moderate Buy with an average price target of $367.22.

Lithia Motors, Inc. (NYSE:LAD - Free Report) - Stock analysts at Zacks Research decreased their Q2 2026 earnings per share estimates for Lithia Motors in a note issued to investors on Wednesday, May 13th. Zacks Research analyst Team now expects that the company will earn $8.87 per share for the quarter, down from their previous estimate of $9.04. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Lithia Motors' current full-year earnings is $34.44 per share. Zacks Research also issued estimates for Lithia Motors' Q3 2026 earnings at $8.95 EPS, Q4 2026 earnings at $8.38 EPS, FY2026 earnings at $33.54 EPS, Q1 2027 earnings at $9.25 EPS and Q1 2028 earnings at $11.17 EPS.

Several other research firms have also weighed in on LAD. Wells Fargo & Company upped their target price on Lithia Motors from $293.00 to $305.00 and gave the company an "equal weight" rating in a report on Thursday, April 30th. Citigroup upped their price objective on Lithia Motors from $326.00 to $365.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Bank of America reduced their price objective on Lithia Motors from $335.00 to $320.00 in a research report on Monday, April 13th. Wall Street Zen downgraded Lithia Motors from a "hold" rating to a "sell" rating in a research report on Saturday, February 28th. Finally, Barclays reduced their price objective on Lithia Motors from $380.00 to $370.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 7th. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $367.22.

Lithia Motors Stock Up 0.6%

Lithia Motors stock opened at $274.80 on Friday. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.24 and a current ratio of 0.99. The firm has a market capitalization of $6.27 billion, a price-to-earnings ratio of 9.65, a price-to-earnings-growth ratio of 0.60 and a beta of 1.28. Lithia Motors has a fifty-two week low of $239.78 and a fifty-two week high of $360.55. The stock's fifty day moving average is $267.63 and its two-hundred day moving average is $300.91.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its earnings results on Wednesday, April 29th. The company reported $7.34 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 12.49% and a net margin of 1.88%.Lithia Motors's revenue was up 1.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $7.66 earnings per share.

Institutional Trading of Lithia Motors

A number of hedge funds have recently added to or reduced their stakes in LAD. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Lithia Motors by 13.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,474 shares of the company's stock worth $2,487,000 after buying an additional 1,032 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Lithia Motors by 67.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 113,346 shares of the company's stock worth $33,272,000 after buying an additional 45,716 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Lithia Motors by 16.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 93,170 shares of the company's stock worth $27,349,000 after buying an additional 13,407 shares during the last quarter. Federated Hermes Inc. boosted its stake in Lithia Motors by 16.2% in the 2nd quarter. Federated Hermes Inc. now owns 2,430 shares of the company's stock worth $821,000 after buying an additional 338 shares during the last quarter. Finally, WINTON GROUP Ltd acquired a new stake in Lithia Motors in the 2nd quarter worth about $651,000.

Insider Activity

In other news, Director Shauna Mcintyre sold 245 shares of the company's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $294.64, for a total value of $72,186.80. Following the sale, the director directly owned 1,846 shares in the company, valued at $543,905.44. This represents a 11.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.08% of the stock is owned by corporate insiders.

Lithia Motors Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 22nd. Stockholders of record on Friday, May 8th will be given a $0.57 dividend. This is an increase from Lithia Motors's previous quarterly dividend of $0.55. This represents a $2.28 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Friday, May 8th. Lithia Motors's dividend payout ratio (DPR) 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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