A Look at Lithia Motors's Upcoming Earnings Report

Lithia Motors (NYSE:LAD) is set to give its latest quarterly earnings report on Wednesday, 2025-10-22. Here's what investors need to know before the announcement.

Analysts estimate that Lithia Motors will report an earnings per share (EPS) of $8.60.

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.

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.53, leading to a 1.28% 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 $309.22 as of October 20. Over the last 52-week period, shares are down 5.79%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analysts' Perspectives on Lithia Motors

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Lithia Motors.

With 8 analyst ratings, Lithia Motors has a consensus rating of Buy. The average one-year price target is $357.12, indicating a potential 15.49% upside.

Comparing Ratings Among Industry Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of AutoNation, Murphy USA and CarMax, three prominent industry players, providing 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 $221.75, suggesting a potential 28.29% downside.
• Analysts currently favor an Outperform trajectory for Murphy USA, with an average 1-year price target of $441.67, suggesting a potential 42.83% upside.
• Analysts currently favor an Neutral trajectory for CarMax, with an average 1-year price target of $59.81, suggesting a potential 80.66% downside.

Summary of Peers Analysis

Within the peer analysis summary, vital metrics for AutoNation, Murphy USA and CarMax are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Lithia Motors ranks highest in gross profit and return on equity among its peers. It is in the middle for consensus rating and revenue growth.

Get to Know Lithia Motors Better

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.

Breaking Down Lithia Motors's Financial Performance

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Over the 3 months period, Lithia Motors showcased positive performance, achieving a revenue growth rate of 3.8% as of 30 June, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Lithia Motors's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.67%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Lithia Motors's ROE excels beyond industry benchmarks, reaching 3.73%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Lithia Motors's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.08%, the company showcases efficient use of assets and strong financial health.

Debt Management: Lithia Motors's debt-to-equity ratio is below the industry average. With a ratio of 2.05, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

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.