A Preview Of Lithia Motors's Earnings

Lithia Motors LAD will release its quarterly earnings report on Wednesday, 2025-04-23. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Lithia Motors to report an earnings per share (EPS) of $7.75.

The market awaits Lithia Motors's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.55, leading to a 0.26% drop in the share price on the subsequent day.

Here's a look at Lithia Motors's past performance and the resulting price change:

Tracking Lithia Motors's Stock Performance

Shares of Lithia Motors were trading at $283.82 as of April 21. Over the last 52-week period, shares are up 19.26%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Lithia Motors

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Lithia Motors.

The consensus rating for Lithia Motors is Outperform, based on 7 analyst ratings. With an average one-year price target of $383.0, there's a potential 34.94% upside.

Analyzing Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of AutoNation, CarMax and Group 1 Automotive, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for AutoNation, with an average 1-year price target of $194.75, suggesting a potential 31.38% downside.
• Analysts currently favor an Outperform trajectory for CarMax, with an average 1-year price target of $90.3, suggesting a potential 68.18% downside.
• Analysts currently favor an Outperform trajectory for Group 1 Automotive, with an average 1-year price target of $454.0, suggesting a potential 59.96% upside.

Snapshot: Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for AutoNation, CarMax and Group 1 Automotive, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Lithia Motors ranks at the top for Revenue Growth and Gross Profit among its peers. However, it has the lowest Return on Equity. Overall, Lithia Motors is positioned favorably compared to its peers in terms of financial performance metrics.

Delving into Lithia Motors's Background

Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 50 brands of vehicles at nearly 500 stores globally across the US, Canada, and UK. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the US and we expect more deals over time in the US and, at times, abroad. Annual revenue in 2024 was $36.2 billion and we see over $50 billion possible in a few years. The US was 78% of 2024 revenue and the UK second at 19%, due to the 2024 Pendragon acquisition. In 2024, new vehicle sales were about 49% of total revenue. Lithia was founded in 1946, went public in 1996, and is the largest US auto dealer. It is based in Medford, Oregon.

Financial Milestones: Lithia Motors's Journey

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Over the 3 months period, Lithia Motors showcased positive performance, achieving a revenue growth rate of 19.54% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Lithia Motors's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.36%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Lithia Motors's ROE excels beyond industry benchmarks, reaching 3.26%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Lithia Motors's ROA excels beyond industry benchmarks, reaching 0.93%. This signifies efficient management of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 2.08.

To track all earnings releases for Lithia Motors visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.