Why Is Lithia Motors (LAD) Up 18.9% Since Last Earnings Report?

Company Performance - Lithia Motors reported Q2 2025 adjusted earnings per share of $10.24, up from $7.87 in the prior year, exceeding the Zacks Consensus Estimate of $9.78 [3] - Revenues for the quarter reached $9.58 billion, a 3.7% year-over-year increase, also surpassing the Zacks Consensus Estimate of $9.53 billion [3] - New vehicle retail revenues increased 2.2% year over year to $4.5 billion, although it fell short of the estimate of $4.75 billion [4] - Used vehicle retail revenues rose 3.6% year over year to $3.1 billion, exceeding the estimate of $2.9 billion [5] - Revenues from used vehicle wholesale surged 32.3% to $383 million, outperforming the estimate of $340 million [6] - Same-store new vehicle revenues increased by 2% year over year, while same-store used vehicle retail sales rose 6.5% [7] Financial Metrics - Cost of sales increased by 3.7% year over year, with SG&A expenses reported at $1.01 billion [8] - Adjusted SG&A as a percentage of gross profit decreased to 67.7% from 67.9% in the prior year [8] - The company announced a dividend of 55 cents per share, payable on August 22, 2025 [9] - As of June 30, 2025, Lithia had cash and cash equivalents of $404.4 million, up from $402.2 million at the end of 2024 [10] - Long-term debt increased to $6.7 billion from $6.1 billion as of December 31, 2024 [10] Market Outlook - Lithia Motors has a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return in the coming months [14] - The stock has an average Growth Score of C, a Momentum Score of D, and a Value Score of A, resulting in an aggregate VGM Score of B [13] - In comparison, AutoNation, a peer in the automotive retail industry, reported revenues of $6.97 billion for the last quarter, reflecting a year-over-year increase of 7.6% [15]