Lithia Motors (LAD) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Lithia Motors (LAD) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended December 2024, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The consensus estimate for Lithia Motors' quarterly earnings is $7.01 per share, reflecting a year-over-year decrease of 14.9$8.81 billion, an increase of 14.9% from the previous year [3]. - The earnings report is expected to be released on February 12, and the stock may rise if the actual numbers exceed expectations, whereas a miss could lead to a decline [2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.5% higher, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Lithia Motors is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.79%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. Earnings Surprise History - In the last reported quarter, Lithia Motors was expected to post earnings of $7.59 per share but actually delivered$8.21, resulting in a positive surprise of +8.17% [12]. - Over the past four quarters, the company has surpassed consensus EPS estimates three times [13]. Industry Comparison - AutoNation (AN), another player in the automotive retail industry, is expected to report earnings of $4.26 per share for the same quarter, indicating a year-over-year decline of 15.1$6.64 billion, down 1.8% from the previous year [17]. - AutoNation's consensus EPS estimate has been revised 1.5% higher in the last 30 days, resulting in an Earnings ESP of 2.11%, suggesting a likelihood of beating the consensus EPS estimate [18].