Zacks Research Expects Higher Earnings for Lithia Motors

Key Points

• Zacks Research raised its Q2 2027 EPS estimate for Lithia Motors to $9.72 from $9.04, while keeping a Hold rating on the stock. The firm also lifted its forecasts for FY2027 and FY2028 earnings.
• Lithia Motors beat quarterly expectations in its latest earnings report, posting $7.34 EPS versus the $7.06 consensus and revenue of $9.27 billion versus $9.22 billion expected. Revenue was up 1.0% year over year.
• The company increased its dividend to $0.57 per share from $0.55, equal to an annualized payout of $2.28 and a yield of about 0.9%. The stock has a mixed analyst backdrop, with a consensus rating of Moderate Buy and an average target price of $367.22.

Lithia Motors, Inc. (NYSE:LAD - Free Report) - Zacks Research increased their Q2 2027 earnings per share estimates for Lithia Motors in a report released on Wednesday, May 13th. Zacks Research analyst Team now forecasts that the company will post earnings of $9.72 per share for the quarter, up from their prior forecast of $9.04. 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' Q3 2027 earnings at $9.82 EPS, Q4 2027 earnings at $8.91 EPS, FY2027 earnings at $37.69 EPS and FY2028 earnings at $46.26 EPS.

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

Several other research analysts have also issued reports on LAD. Wall Street Zen lowered Lithia Motors from a "hold" rating to a "sell" rating in a research note on Saturday, February 28th. Barclays dropped their price objective on Lithia Motors from $380.00 to $370.00 and set an "overweight" rating for the company in a research note on Tuesday, April 7th. Weiss Ratings lowered 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 report on Thursday, May 7th. Finally, Bank of America dropped their price objective on shares of Lithia Motors from $335.00 to $320.00 in a report on Monday, April 13th. Six analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, Lithia Motors currently has an average rating of "Moderate Buy" and a consensus target price of $367.22.

Lithia Motors Stock Performance

Lithia Motors stock opened at $261.67 on Monday. The company has a debt-to-equity ratio of 1.41, a current ratio of 0.99 and a quick ratio of 0.24. The stock has a fifty day moving average price of $267.40 and a two-hundred day moving average price of $300.48. Lithia Motors has a 52-week low of $239.78 and a 52-week high of $360.55. The firm has a market capitalization of $5.97 billion, a P/E ratio of 9.19, a P/E/G ratio of 0.58 and a beta of 1.28.

Lithia Motors Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Stockholders of record on Friday, May 8th will be paid a $0.57 dividend. This represents a $2.28 dividend on an annualized basis and a dividend yield of 0.9%. This is a boost from Lithia Motors's previous quarterly dividend of $0.55. The ex-dividend date is Friday, May 8th. Lithia Motors's dividend payout ratio is 8.01%.

Insider Buying and Selling at Lithia Motors

In other news, Director Shauna Mcintyre sold 245 shares of the firm'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 completion of the sale, the director directly owned 1,846 shares in the company, valued at approximately $543,905.44. This trade represents a 11.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Company insiders own 1.08% of the company's stock.

Institutional Trading of Lithia Motors

Hedge funds and other institutional investors have recently made changes to their positions in the business. Clearstead Advisors LLC increased its stake in shares of Lithia Motors by 111.4% in the fourth quarter. Clearstead Advisors LLC now owns 93 shares of the company's stock valued at $31,000 after buying an additional 49 shares in the last quarter. Root Financial Partners LLC bought a new position in Lithia Motors in the 3rd quarter worth approximately $31,000. V Square Quantitative Management LLC bought a new position in Lithia Motors in the 4th quarter worth approximately $34,000. Parkside Financial Bank & Trust raised its position in Lithia Motors by 75.0% in the 3rd quarter. Parkside Financial Bank & Trust now owns 105 shares of the company's stock worth $33,000 after purchasing an additional 45 shares during the last quarter. Finally, Quarry LP raised its position in Lithia Motors by 101.9% in the 4th quarter. Quarry LP now owns 109 shares of the company's stock worth $36,000 after purchasing an additional 55 shares during the last quarter.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.