Lithia Motors (NYSE:LAD) Releases Quarterly Earnings Results, Beats Expectations By $0.64 EPS

Lithia Motors (NYSE:LAD) issued its quarterly earnings data on Wednesday. The company reported $10.34 EPS for the quarter, topping the consensus estimate of $9.70 by $0.64, Zacks reports. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%. The firm had revenue of $9.95 billion during the quarter, compared to the consensus estimate of $9.75 billion.

Lithia Motors Trading Up 2.3%

NYSE:LAD opened at $299.93 on Wednesday. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.21 and a current ratio of 1.00. The firm has a market cap of $6.59 billion, a price-to-earnings ratio of 9.95, a price-to-earnings-growth ratio of 0.68 and a beta of 1.27. Lithia Motors has a 52 week low of $239.78 and a 52 week high of $439.49. The firm has a 50-day moving average price of $335.78 and a two-hundred day moving average price of $314.99.

Lithia Motors Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 21st. Shareholders of record on Friday, August 7th were paid a $0.70 dividend. This is a positive change from Lithia Motors’s previous quarterly dividend of $0.57. The ex-dividend date was Friday, August 7th. This represents a $2.80 annualized dividend and a yield of 0.9%. Lithia Motors’s dividend payout ratio (DPR) is 9.29%.

Insider Activity at Lithia Motors

In other news, Director Stacy Congdon sold 75 shares of the business’s stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $370.73, for a total value of $27,804.75. Following the transaction, the director owned 2,300 shares in the company, valued at $852,679. The trade was a 3.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.08% of the stock is currently owned by corporate insiders.

Key Lithia Motors News

Here are the key news stories impacting Lithia Motors this week:

• Positive Sentiment: Third-quarter revenue reached approximately $9.9 billion to $9.95 billion, above the FactSet consensus estimate of $9.75 billion. Lithia & Driveway Q3 Revenue Earnings Flash
• Positive Sentiment: Adjusted earnings per share were $10.34, beating the $9.70 consensus by $0.64. Diluted EPS was $13.22, up 54% year over year, while adjusted diluted EPS increased 9%. Lithia & Driveway Q3 Adjusted EPS Earnings Flash
• Positive Sentiment: Used-vehicle retail gross profit per unit increased 11% year over year, while aftersales gross profit rose 2.4% and same-store aftersales gross margin expanded 100 basis points to 59.5%. These trends indicate continued strength in key higher-margin operations. Lithia & Driveway Third Quarter Results
• Positive Sentiment: Financing Operations income climbed 69% to $32.3 million, supported by record originations of $937 million and an 18.3% penetration rate.
• Positive Sentiment: Lithia repurchased $85 million of stock during the quarter—1.1% of shares outstanding—and raised its quarterly dividend by 7%, enhancing shareholder returns.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on LAD shares. Jefferies Financial Group reaffirmed a “buy” rating and set a $490.00 target price on shares of Lithia Motors in a research report on Thursday, July 30th. Morgan Stanley lowered their price target on Lithia Motors from $358.00 to $310.00 and set an “equal weight” rating for the company in a research report on Monday, October 5th. Wells Fargo & Company raised their price objective on Lithia Motors from $306.00 to $395.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. JPMorgan Chase & Co. dropped their price objective on Lithia Motors from $340.00 to $320.00 and set a “neutral” rating on the stock in a research note on Tuesday, October 6th. Finally, Wall Street Zen raised shares of Lithia Motors from a “sell” rating to a “hold” rating in a report on Saturday, August 1st. Six equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $402.60.

About Lithia Motors

Lithia Motors, Inc is an automotive retailer headquartered in Medford, Oregon. Operating under the Lithia & Driveway name, the company sells new and used vehicles through a network of franchised dealerships and digital retail channels. Its dealerships represent a broad range of domestic, Asian and European automotive brands.

In addition to vehicle sales, Lithia provides related services including vehicle financing and insurance products, parts and maintenance, collision repair, and other after-sales support.