Lithia Motors (LAD) Misses Q4 Earnings and Revenue Estimates

Core Viewpoint - Lithia Motors reported quarterly earnings of $6.74 per share, missing the Zacks Consensus Estimate of $8.09 per share, representing a year-over-year decline from $7.79 per share and an earnings surprise of -16.69% [1] Financial Performance - The company posted revenues of $9.2 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 3.44%, and showing a slight decrease from year-ago revenues of $9.22 billion [2] - Over the last four quarters, Lithia Motors has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Lithia Motors shares have declined approximately 1.7% since the beginning of the year, while the S&P 500 has gained 1.4% [3] - The current Zacks Rank for Lithia Motors is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $8.47 on revenues of $9.34 billion, and for the current fiscal year, it is $38.39 on revenues of $39.56 billion [7] - The estimate revisions trend for Lithia Motors was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Automotive - Retail and Whole Sales industry is currently in the top 36% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]