Lithia Motors (LAD) Q2 2025 Earnings Call July 29, 2025 10:00 AM ET Company ParticipantsJardon Jaramillo - Senior Director - FP&A and IRBryan DeBoer - President & CEOTina Miller - Senior VP & CFOChuck Lietz - SVP - FinanceRajat Gupta - Executive Director - AutosDaniela Haigian - VP & Equity ResearchMark Jordan - VP - Equity ResearchJeff Lick - Managing DirectorFederico Merendi - Equity Research AssociateDouglas Dutton - Vice PresidentConference Call ParticipantsRyan Sigdahl - Partner & Senior Research Analy ...

Friday’s pre-market futures are in the green at this hour, though a little choppy. One new economic report and a handful of Q2 earnings releases ahead of the opening bell are perhaps having some impact, but over the past week of trading — which has been positive across the board — we’re seeing a bit of moderation at or near all-time highs.The Dow is +55 points at this hour, while the S&P 500 is +8 points and the Nasdaq +6. The small-cap Russell 2000 is +8 points currently. Over the past five days of trading ...

Core Insights - The narrative surrounding the top stock picks has shifted dramatically from March, with a focus now on which stocks can maintain their gains and finish strong in the second half of 2025 [3] Stock Performance Summary - Beam Therapeutics (BEAM) has seen a significant decline of 32.70% year-to-date, with a recent drop of 21.25% in Q1 and 14.70% in Q2 [3] - Bloom Energy (BE) has rebounded with a 9.89% gain in Q2, although it remains below its year-to-date breakeven level [3][5] - Boeing (BA) has shown resilience with a 16.27% increase in Q2, leading to a 12.03% year-to-date gain [3][5] - Carvana (CVNA) has surged with a remarkable 51.87% gain in Q2, resulting in a 56.17% year-to-date increase [3] - CF Industries (CF) has rebounded with a 27.34% gain in Q2, bringing its year-to-date performance to 16.64% [3][6] - Coinbase Global (COIN) has experienced a significant turnaround with a 76.55% gain in Q2, leading to a 22.46% year-to-date increase [3][7] - Dell Technologies (DELL) has gained 30.27% in Q2, with a modest year-to-date increase of 3.04% [3][8] - Deutsche Bank (DB) has performed exceptionally well, with a 62.31% year-to-date gain, including a 16.11% increase in Q2 [3][8] - Nebius Group (NBIS) has surged with a 127.85% gain in Q2, resulting in a 73.83% year-to-date increase [3][9] - Rocket Lab (RKLB) has shown a 66.85% gain in Q2, leading to a 17.17% year-to-date performance [3][10] - Sea Ltd (SE) has maintained a strong performance with a 17.90% gain in Q2, resulting in a 45.00% year-to-date increase [3][11] - STMicroelectronics NV (STM) has seen a nearly 60% increase from its five-year low, supported by a price-target hike [3][12] - Roku Inc (ROKU) has only increased by 10.5% year-to-date, but a new partnership with Amazon could enhance its prospects [3][13] Market Sentiment and Technical Analysis - A total of 13 stocks have transitioned from negative to positive performance in Q2, with only two stocks remaining in the red [3] - The overall total return for the top picks has shifted from a loss of -163% in Q1 to a gain of approximately 271% year-to-date [3] - The market sentiment remains cautious, with lingering negative sentiment from Q1 underperformance affecting some stocks [15] - Stocks like EZPW and Rocket Lab have notable short interest, indicating potential volatility [16]

Core Insights - Thor Industries, Inc. reported earnings of $2.53 per share for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.79 and up from $2.13 in Q3 fiscal 2024 [1] - The company achieved revenues of $2.89 billion in Q3, surpassing the Zacks Consensus Estimate of $2.61 billion, representing a year-over-year increase of 3.2% [1] Segmental Results - **North American Towable RVs**: Revenues reached $1,168.9 million, a 9.1% increase year-over-year, driven by higher unit shipments and net price per unit, exceeding the estimate of $979.8 million [2] - **North American Motorized RVs**: Revenues totaled $666.7 million, growing 3.1% year-over-year, also surpassing the estimate of $558.9 million. However, gross profit decreased by 2% to $70.3 million due to increased sales discounting [4] - **European RVs**: Revenues fell to $883.5 million, down 5.1% year-over-year, missing the estimate of $934.8 million. Gross profit declined by 12.3% to $142.8 million, with pretax income dropping to $46.3 million from $77.4 million in the previous year [5] Financial Performance - Gross profit for the company was $174.3 million, a 26.2% increase year-over-year, with pretax income rising to $97.6 million from $68.4 million in the prior year [3] - As of April 30, 2025, Thor had cash and cash equivalents of $508.3 million and long-term debt of $1 billion, with operating cash inflow of $257.7 million compared to $251.7 million in the same quarter of 2024 [6] Guidance - Thor reiterated its fiscal 2025 guidance, projecting consolidated net sales between $9 billion and $9.5 billion, with a gross profit margin expected to be between 13.8% and 14.5%. EPS is anticipated to be in the range of $3.30 to $4 [7]

Key Takeaways CVNA reported record Q1 2025 adjusted EBITDA of $488M, up $253M year over year with an 11.5% margin. Approximately 80% of adjusted EBITDA converted into GAAP operating income, hitting 9.3% margin. CVNA expects sequential EBITDA growth in Q2 and aims for 13.5% margins over the next five to ten years.Carvana Co. (CVNA) achieved a record-breaking adjusted EBITDA of $488 million in the first quarter of 2025, which increased $253 million year over year. The company's adjusted EBITDA margin reache ...