Why Lithia Motors (LAD) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Lithia Motors (LAD) is well-positioned to continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates consistently in recent quarters [1][3]. Earnings Performance - For the last reported quarter, Lithia Motors achieved earnings of $8.21 per share, exceeding the Zacks Consensus Estimate of$7.59 per share by 8.17% [2]. - In the previous quarter, the company reported earnings of $7.87 per share against an expected$7.09 per share, resulting in a surprise of 11% [2]. Earnings Estimates - There has been a favorable change in earnings estimates for Lithia Motors, with a positive Earnings ESP (Expected Surprise Prediction) indicating strong potential for an earnings beat [3][6]. - The current Earnings ESP for Lithia Motors is +1.83%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [6]. Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5].