A month has gone by since the last earnings report for Lithia Motors (LAD) . Shares have added about 14.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Lithia Motors due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Lithia Q3 Earnings Beat Expectations, Revenues ...

For Immediate ReleaseChicago, IL – November 14, 2024 – Today, Zacks Equity Research Lithia Motors (LAD) and Rush Enterprises (RUSHA) .Industry: Auto RetailLink: https://www.zacks.com/commentary/2369377/2-resilient-auto-retailers-rewarding-investors-amid-industry-hurdles?art_rec=quote-stock_overview-zacks_news-ID01-txt-2369377The outlook for the Zacks Auto Retail and Wholesale industry is muted now amid concerns over slowing vehicle sales growth. While consumer incentives offer some relief, they also squeeze ...

The outlook for the Zacks Auto Retail and Wholesale industry is muted now amid concerns over slowing vehicle sales growth. While consumer incentives offer some relief, they also squeeze retailers' profit margins. Adding to the pressure, uncertainty surrounding EV policies under Donald Trump's presidency may further dampen sales. Despite these complex challenges, auto retailers like Lithia Motors (LAD) and Rush Enterprises (RUSHA) appear well-prepared, leveraging strategic expansions and shareholder-focused ...

Lithia Motors (LAD) reported third-quarter 2024 adjusted earnings per share of $8.21, which declined from the prior-year quarter's $9.25 but surpassed the Zacks Consensus Estimate of $7.59. Higher-than-expected revenues from used vehicle wholesale and aftersales segments led to the beat. The auto retailer clocked revenues of $9.2 billion, which increased 11.4% year over year but missed the Zacks Consensus Estimate of $9.4 billion. Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar. Seg ...

Financial Data and Key Metrics Changes - Lithia Motors achieved record revenues of $9.2 billion in Q3 2024, an 11% increase from Q3 2023 [6] - Adjusted diluted earnings per share reached $8.21, reflecting strong operational execution [5] - Adjusted SG&A as a percentage of gross profit improved from 67.9% in Q2 to 66% in Q3 [6][22] - Annualized cost savings reached $200 million, exceeding initial targets [7][38] Business Line Data and Key Metrics Changes - New vehicle units increased by 2% year-over-year, while used vehicle units decreased by 9.6% [20] - Aftersales revenues grew by 5.1% compared to the prior year, with a gross profit margin of 56% [21] - Front-end GPUs for used vehicles remained stable at $2,136, while new vehicle GPUs normalized to $4,631 [20][21] Market Data and Key Metrics Changes - The digital ecosystem saw growth to 12 million monthly unique visitors, with Driveway and GreenCars contributing 3 million [11] - The company operates in one of the largest addressable retail markets globally, with a focus on capturing market share [10] Company Strategy and Development Direction - The company aims to enhance operational efficiencies, customer loyalty, and market share through disciplined execution and strategic partnerships [6][9] - Acquisition remains a core competency, targeting a minimum after-tax return of 15% [12] - The company is focused on building a complete mobility ecosystem and leveraging its scale for growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate market dynamics and achieve profitability through operational improvements [12][29] - The company anticipates continued strength in aftersales and a gradual normalization of vehicle GPUs [7][60] - Management highlighted the importance of adapting to local market conditions and maintaining financial discipline [28] Other Important Information - The financing operations segment reported profitability of $1 million, a significant improvement from a loss of $4 million in the same quarter last year [24] - The company repurchased $54 million of its outstanding shares during the quarter, representing 0.7% of total shares [14][27] Q&A Session Summary Question: Used inventory trends and strategy - Management acknowledged challenges in sourcing core models and emphasized a focus on improving used inventory performance moving forward [30][31] Question: DFC operating income and provision concerns - Management noted signs of stress primarily in the subprime segment but expressed confidence in the overall portfolio's health [33][34] Question: Cost-cutting targets and future expectations - Management exceeded initial cost-saving targets and indicated potential for further reductions, with a focus on operational efficiencies [38][39] Question: Impact of Stellantis incentives on sales - Management reported mixed results with Stellantis, noting a need for pricing adjustments to improve market share [40][41] Question: SG&A improvements and future modeling - Management provided insights on expected SG&A trends, factoring in seasonality and potential further reductions [45][46] Question: Share repurchase flexibility and M&A pipeline - Management indicated a balanced approach to capital allocation, with flexibility to adjust share repurchases based on M&A opportunities [47][48] Question: Wholesale revenue and inventory management - Management attributed revenue jumps to normal seasonality rather than specific fallout from CDK [54] Question: Future GPU expectations and industry dynamics - Management expressed optimism about stabilizing GPUs and anticipated a return to normalized levels as supply improves [56][62]

Lithia Motors (LAD) reported $9.22 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 11.4%. EPS of $8.21 for the same period compares to $9.25 a year ago.The reported revenue represents a surprise of -2.01% over the Zacks Consensus Estimate of $9.41 billion. With the consensus EPS estimate being $7.59, the EPS surprise was +8.17%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Lithia & Driveway (LAD) Reports Record Third Quarter Revenue of $9.2 billion, an 11% Increase ________________________________________________ Announces Dividend of $0.53 per Share for Third Quarter Medford, Oregon, October 23, 2024 - Lithia & Driveway (NYSE: LAD) today reported the highest third quarter revenue in company history and the second profitable quarter for Financing Operations, which includes Driveway Finance Corporation. Third quarter 2024 revenue increased 11% to $9.2 billion from $8.3 billion ...

Lithia Motors (LAD) came out with quarterly earnings of $8.21 per share, beating the Zacks Consensus Estimate of $7.59 per share. This compares to earnings of $9.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.17%. A quarter ago, it was expected that this auto dealership chain would post earnings of $7.09 per share when it actually produced earnings of $7.87, delivering a surprise of 11%.Over the last four quarters, the c ...

Announces Dividend of $0.53 per Share for Third QuarterMEDFORD, Ore., Oct. 23, 2024 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today reported the highest third quarter revenue in company history and the second profitable quarter for Financing Operations, which includes Driveway Finance Corporation.Third quarter 2024 revenue increased 11% to $9.2 billion from $8.3 billion in the third quarter of 2023.Third quarter 2024 diluted earnings per share attributable to LAD was $7.80, an 18% decrease from $9.46 pe ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Lithia Motors (LAD) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 23, 2024, might help the stock move higher if these key numbers are better tha ...