Lithia Motors Q2 Result Smashes Estimates

Lithia Motors Inc LAD reported second-quarter FY21 sales growth of 118% year-on-year to $6 billion, beating the analyst consensus of $4.99 billion.
New-vehicle retail sales rose 130% Y/Y, and used vehicle retail sales increased 95.7% Y/Y.
The company raked in $4.13 billion in same-store revenues, a 52.9% hike Y/Y.
Gross profit for the quarter was $1.11 billion, a 139.1% increase Y/Y and the gross margin improved 170 basis points Y/Y to 18.5%.
Total vehicle gross profit per unit rose 41.3% Y/Y to $5,723.
Adjusted selling, general and administrative expenses as a percentage of gross profit improved Y/Y by 900 basis points from 64.7% to 55.7%.
A 7.4% operating margin with $446.3 million in operating income was recorded in the quarter.
Adjusted EBITDA improved 208.8% to $492.3 million.
Adjusted EPS of $11.2 beat the analyst consensus of $5.85.
Cash and equivalents totaled $780.9 million as of June 30, 2021. The company had $1.57 billion net debt as of June 30, 2021.
“Combined with our outpaced growth in our core business and network development, we are considerably ahead of our year one goals laid out in our 5-Year Plan announced in July 2020,” said CEO Bryan DeBoer.
Price action: LAD shares closed higher by 5.88% at $355.56 on Tuesday.

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