Core Viewpoint - Lithia Motors reported strong Q3 2025 earnings, beating estimates, but shares have declined by 11.5% since the last earnings report, underperforming the S&P 500 [1][2]. Financial Performance - Adjusted earnings per share for Q3 2025 were $9.50, up from $8.21 in the prior year and exceeding the Zacks Consensus Estimate of $8.53 [2]. - Total revenues reached $9.67 billion, a 5% increase year over year, surpassing the Zacks Consensus Estimate of $9.61 billion [2]. Segmental Performance - New vehicle retail revenues increased by 4.5% year over year to $4.63 billion, exceeding estimates due to higher unit sales and average selling price (ASP) [3]. - New vehicle units sold rose by 1.8% to 96,639 units, beating the estimate of 95,276 units, with ASP increasing to $47,913 from $46,649 [3]. - Used vehicle retail revenues grew by 8.9% to $3.1 billion, surpassing estimates, driven by higher ASP [4]. - Used vehicle retail units sold increased by 4% to 109,097 units, though below expectations, with ASP rising to $28,381 [4]. - Revenues from used vehicle wholesale fell by 6.1% to $367 million, missing estimates [5]. Cost and Expenses - Cost of sales increased by 5.4% year over year, while SG&A expenses rose by 5.8% to $998 million [7]. - Adjusted SG&A as a percentage of gross profit was 67.9%, up from 66% in the prior year [7]. Cash and Debt Position - Cash and cash equivalents increased to $417.1 million as of September 30, 2025, from $402.2 million at the end of 2024 [9]. - Long-term debt rose to $6.97 billion as of September 30, 2025, up from $6.12 billion at the end of 2024 [9]. Shareholder Returns - The company announced a dividend of 55 cents per share, payable on November 21, 2025 [8]. - Lithia repurchased approximately 1,312,000 shares at an average price of $312, with $889.3 million remaining under its buyback authorization [8]. Market Outlook - Lithia Motors holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [13]. - The company has a strong Growth Score of A but lags in Momentum Score with a D, while maintaining an aggregate VGM Score of A [12].

Core Insights - MarineMax reported fourth quarter revenue of $552.2 million, a decrease from $563.1 million in the prior year, primarily due to lower new boat sales and strategic store closures [8][12] - Gross margins improved to 34.7%, driven by the strength of diversified higher-margin businesses, despite lower boat margins in a challenging retail environment [9][12] - The company experienced a 2.3% increase in same-store sales, supported by growth in used boat revenue, finance and insurance, parts and service income, and contributions from Superyacht services and marina operations [8][12] Fiscal 2025 Fourth Quarter Summary - Revenue for the fourth quarter was $552.2 million, down from $563.1 million year-over-year [8][12] - Gross profit was $191.4 million, representing 34.7% of revenue, compared to 34.3% in the prior year [9][12] - Net loss was $0.9 million, or $0.04 per share, compared to net income of $4.0 million, or $0.17 per diluted share, in the prior year [12][22] Fiscal 2025 Full Year Summary - Total revenue for fiscal 2025 was $2.3 billion, down from $2.4 billion in fiscal 2024 [12][22] - Adjusted EBITDA for the year was $109.8 million, compared to $160.2 million in the previous year [12][26] - The company reported a net loss of $31.6 million for the year, or $1.43 per share, compared to net income of $38.1 million, or $1.71 per share, in the prior year [12][22] CEO and President Commentary - The CEO highlighted the resilience of the diversified business model and the strategic expansion into higher-margin businesses, which is expected to drive long-term value creation [4][14] - Recent initiatives, including the launch of a flagship Yacht Sales and Service Center, reflect the company's commitment to innovation and customer service [5][14] - The company is focused on refining its product portfolio and unlocking synergies across yacht sales, Superyacht services, and marina operations [6][14] Fiscal 2026 Outlook - MarineMax expects fiscal 2026 Adjusted EBITDA to be in the range of $110 million to $125 million, with adjusted net income projected between $0.40 and $0.95 per diluted share [13][14] - The outlook reflects a cautious approach due to macroeconomic uncertainty and persistent industry headwinds, but the company remains confident in its long-term growth strategy [14][13] Recent Business Developments - The company achieved record unit sales and revenue at the recent Fort Lauderdale International Boat Show, indicating strong consumer engagement [7][14] - Two new members were appointed to the Board of Directors, enhancing governance and strategic innovation capabilities [8][14]

Core Viewpoint - Asbury Automotive Group's recent earnings report showed a mixed performance, with adjusted earnings per share exceeding estimates but revenues falling short, leading to a 15.6% increase in share price over the past month, outperforming the S&P 500 [1][3]. Financial Performance - Asbury reported Q2 2025 adjusted earnings per share of $7.43, surpassing the Zacks Consensus Estimate of $6.82 and increasing from $6.40 in the previous year [3]. - Total revenues for the quarter were $4.37 billion, a nearly 3% year-over-year increase, but below the Zacks Consensus Estimate of $4.45 billion [3]. Segment Performance - New vehicle revenues rose 6% year-over-year to $2.30 billion, slightly missing the consensus estimate of $2.31 billion, with retail units sold totaling 44,437, up 4% year-over-year but below the consensus of 45,291 units [4]. - Used vehicle retail revenues declined 3% year-over-year to $1.13 billion, missing the consensus estimate of $1.15 billion, with retail used vehicle units sold totaling 36,233, down 6% year-over-year [5]. - Revenues from the used vehicle wholesale business increased 11% to $156.3 million, exceeding the consensus estimate of $153 million [6]. - Finance and insurance business net revenues amounted to $182 million, down 5% year-over-year and below the consensus estimate of $203 million [7]. - Parts and service business revenues were $601.5 million, up from $580.9 million year-over-year but missing the consensus estimate of $625 million [8]. Cost and Debt Management - Selling, general & administrative expenses as a percentage of gross profit rose to 63.2%, a decrease of 198 basis points year-over-year [9]. - As of June 30, 2025, the company had cash and cash equivalents of $54.8 million, down from $69.4 million at the end of 2024, and long-term debt decreased to $3.05 billion from $3.14 billion [9]. Market Outlook - Estimates for Asbury Automotive have been trending upward, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [12]. - The company has a subpar Growth Score of D and a Momentum Score of D, but a strong Value Score of A, placing it in the top quintile for value investment strategy [11]. Industry Comparison - Asbury Automotive is part of the Zacks Automotive - Retail and Wholesale industry, where Sonic Automotive has gained 17.1% over the past month, reporting revenues of $3.66 billion, a year-over-year increase of 5.9% [13].

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]

Financial Data and Key Metrics Changes - Total revenue increased by 2% to $553 million in Q3 2025 from $542 million in Q3 2024 [4][13] - Gross profit declined to $129 million in Q3 2025 compared to $133 million in the prior year, primarily due to lower new boat volumes and a promotional environment [14] - Net income for Q3 totaled $11 million or $0.65 per diluted share, down from $17 million or $0.99 per diluted share in the prior year [14] - Adjusted earnings per diluted share decreased to $0.79 from $1.05 in the prior year [14] Business Line Data and Key Metrics Changes - New boat sales decreased by 2% to $326 million, while pre-owned boat sales increased by 18% to $126 million [13][10] - Revenue from service parts and other sales decreased by 2% to $83 million, driven by lower production from boat manufacturers [13] - Finance and Insurance revenue remained flat as a percentage of sales, maintaining healthy penetration rates [11] Market Data and Key Metrics Changes - Same store sales grew by 2% against an industry backdrop that saw declines in excess of 15% [4][13] - Total inventory decreased by 14% year over year, with a target to end the fiscal year with inventory down by 10% to 15% [6][15] Company Strategy and Development Direction - The company is focused on three key areas: maintaining healthy inventory of high-performing brands, executing disciplined cost management, and leveraging scale and operational expertise [7] - A brand rationalization strategy is in place to exit selected brands by the end of the year, allowing focus on the highest performing brands [7] - The company aims to reduce leverage as part of its capital allocation strategy [16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding July's performance and the potential for a trend to continue, despite persistent macroeconomic uncertainty [18] - The company raised its full-year revenue outlook to a range of $1.8 billion to $1.85 billion, anticipating same store sales to be up in the low single digits [17] - Management noted that the premium customer segment remains resilient despite tariff uncertainties affecting consumer confidence [24] Other Important Information - Total liquidity as of June 30 was in excess of $85 million, including cash on hand and availability under credit facilities [15] - Total long-term debt as of June 30 was $419 million, resulting in a net leverage of 5.8 times trailing twelve months adjusted EBITDA [16] Q&A Session Summary Question: Changes in behavior regarding tariff and market correction - Management noted that during the quarter, there was more confusion regarding tariffs, but subsequent clarity has led to less concern among customers [21][22] Question: Growth in pre-owned boat sales - The 18% growth in pre-owned boat sales is attributed to more customers trading in their boats rather than a trade-down effect [25][26] Question: Trade-in and replacement ratios - Management clarified that trade-ins are primarily for upgrading to larger boats, indicating a healthy churn in the market [29][30]

Core Insights - AutoNation, Inc. reported second-quarter 2025 adjusted earnings of $5.46 per share, a 37% increase year over year, exceeding the Zacks Consensus Estimate of $4.70, driven by strong revenues across various segments [1] - Total revenues for the quarter reached $6.97 billion, surpassing the Zacks Consensus Estimate of $6.80 billion and up from $6.48 billion in the same quarter of 2024 [1] Revenue Breakdown - New vehicle revenues increased by 8.8% year over year to $3.40 billion, exceeding the estimate of $3.24 billion, with retail units sold totaling 65,847, a 7.5% increase [2] - Retail used-vehicle revenues rose 5.8% to $1.85 billion, surpassing the projection of $1.76 billion, with used vehicle retail units sold totaling 69,736, a 6.5% increase [3] - Wholesale used vehicle revenues decreased by 16.5% to $140 million, missing the estimate of $164.2 million, although gross profit increased significantly [4] - Finance and insurance business revenues amounted to $367.7 million, a 13.5% increase year over year, beating the projection of $327 million [4] - Parts and service business revenues grew by 9.3% to $1.22 billion, exceeding the estimate of $1.18 billion [5] Segment Performance - Domestic segment revenues rose 10.4% year over year to $1.92 billion, surpassing the projection of $1.75 billion, with income climbing 82.9% to $92 million [6] - Import segment revenues increased 6.4% to $2.15 billion, exceeding the forecast of $2.02 billion, with income rising 23.3% to $133.4 million [6] - Premium Luxury segment sales increased by 6.6% to $2.56 billion, slightly missing the projection of $2.57 billion, but income rose 26.9% to $180.1 million [7] Financial Position - As of June 30, 2025, the company's liquidity stood at $1.8 billion, including $63 million in cash and nearly $1.8 billion available under its revolving credit facility [8] - Inventory was valued at $3.46 billion, with non-vehicle debt at $3.76 billion [9] - Capital expenditure for the quarter was $79 million, and the company repurchased 1.5 million shares for $254 million during the first half of 2025 [9]