We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lithia Motors (LAD) Q1 Earnings Lag Estimates, Rise Y/Y
Read MoreHide Full Article
Lithia Motors, Inc. (LAD - Free Report) reported adjusted earnings per share of $2.07 in first-quarter 2018, increasing from $2.01 in the prior-year quarter. However, the bottom line missed the Zacks Consensus Estimate of $2.4.
Reportedly, in the quarter, net income rose 3% year over year to $52 million. Revenues in the reported quarter were $2.66 billion, beating the Zacks Consensus Estimate by a slight margin. The figure was $2.24 billion in the year-ago quarter.
Gross profit climbed 19.5% to $408 million in the quarter under review from $341.7 million in the year-ago quarter.
Lithia Motors, Inc. Price, Consensus and EPS Surprise
Lithia Motors witnessed muted demand in January and February, primarily due to severe weather conditions. However, earnings shortfall was recovered to an extent in March. The company anticipates a similar trend throughout 2018 as well.
Quarter in Details
Revenues from new-vehicle retail plunged 20.2% to $1.45 billion in the quarter. New-vehicle retail sales volume expanded 16.5% to 41,497 units. The average selling price of new-vehicle retail rose 3.2% to $35,056 from the year-ago figure of $33,982.
Used-vehicle retail revenues increased 18.8% to $715.6 million in the quarter, whereas revenues from used-vehicle wholesale increased 6.2% to $76 million. Used-vehicle retail sales volume improved 17.3% to 36,114 units. The average selling price of used-vehicle retail sales gained 1.3% to $19,814 from the year-ago figure of $19,563.
Revenues from service body and parts went up 22.8% to $285.7 million. The company’s finance and insurance business recorded 22.7% rise in revenues to $106.5 million. Revenues from fleet and others declined 35.1% to $21.2 million.
Acquisitions & Divestments
In first-quarter 2018, the company added Honda and Acura points in Buffalo, NY; the Day Group in Pittsburgh, PA and six locations from the Prestige Family of Fine Cars in Bergen County, NJ. Also, Lithia Motors divested a Mazda Volvo location in Fresno, CA.
Further, in April, the company added Broadway Ford in Idaho Falls, ID and Buhler Ford in Eatontown, NJ while divesting a Mitsubishi franchise in Fresno, CA.
Financial Details
Lithia Motors had cash and cash equivalents of $69 million as of Mar 31, 2018, up from $57.3 million as of Dec 31, 2017. Long-term debt was $1.81 billion as of Mar 31, 2018, compared with $1 billion as of Dec 31, 2017.
Dividend & Share Repurchases
Lithia Motors announced a quarterly dividend of 29 cents per share, marking year-over-year rise of 7%. The amount will be payable on May 25, 2018, to shareholders of record as of May 11, 2018.
Year to date, the company repurchased 90,000 shares. Further, Lithia Motors is left with $154 million under their existing $250-million share repurchase authorization.
Outlook
For 2018, Lithia Motors raised anticipated earnings to $10.6 per share, an increase from the prior expectation of $10.5. Further, the company expects revenues of $12-$12.5 billion compared with the previous anticipation of $11-$11.5 billion.
BMW has expected long-term growth rate of 4.5%. Over a year, shares of the company have gained 13.7%.
Dana has expected long-term growth rate of 10%. Shares of the company have risen 28.1% in the past year.
Allison Transmission has expected long-term growth rate of 10%. Over a year, shares of the company have gained 0.7%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Lithia Motors (LAD) Q1 Earnings Lag Estimates, Rise Y/Y
Lithia Motors, Inc. (LAD - Free Report) reported adjusted earnings per share of $2.07 in first-quarter 2018, increasing from $2.01 in the prior-year quarter. However, the bottom line missed the Zacks Consensus Estimate of $2.4.
Reportedly, in the quarter, net income rose 3% year over year to $52 million. Revenues in the reported quarter were $2.66 billion, beating the Zacks Consensus Estimate by a slight margin. The figure was $2.24 billion in the year-ago quarter.
Gross profit climbed 19.5% to $408 million in the quarter under review from $341.7 million in the year-ago quarter.
Lithia Motors, Inc. Price, Consensus and EPS Surprise
Lithia Motors, Inc. Price, Consensus and EPS Surprise | Lithia Motors, Inc. Quote
Lithia Motors witnessed muted demand in January and February, primarily due to severe weather conditions. However, earnings shortfall was recovered to an extent in March. The company anticipates a similar trend throughout 2018 as well.
Quarter in Details
Revenues from new-vehicle retail plunged 20.2% to $1.45 billion in the quarter. New-vehicle retail sales volume expanded 16.5% to 41,497 units. The average selling price of new-vehicle retail rose 3.2% to $35,056 from the year-ago figure of $33,982.
Used-vehicle retail revenues increased 18.8% to $715.6 million in the quarter, whereas revenues from used-vehicle wholesale increased 6.2% to $76 million. Used-vehicle retail sales volume improved 17.3% to 36,114 units. The average selling price of used-vehicle retail sales gained 1.3% to $19,814 from the year-ago figure of $19,563.
Revenues from service body and parts went up 22.8% to $285.7 million. The company’s finance and insurance business recorded 22.7% rise in revenues to $106.5 million. Revenues from fleet and others declined 35.1% to $21.2 million.
Acquisitions & Divestments
In first-quarter 2018, the company added Honda and Acura points in Buffalo, NY; the Day Group in Pittsburgh, PA and six locations from the Prestige Family of Fine Cars in Bergen County, NJ. Also, Lithia Motors divested a Mazda Volvo location in Fresno, CA.
Further, in April, the company added Broadway Ford in Idaho Falls, ID and Buhler Ford in Eatontown, NJ while divesting a Mitsubishi franchise in Fresno, CA.
Financial Details
Lithia Motors had cash and cash equivalents of $69 million as of Mar 31, 2018, up from $57.3 million as of Dec 31, 2017. Long-term debt was $1.81 billion as of Mar 31, 2018, compared with $1 billion as of Dec 31, 2017.
Dividend & Share Repurchases
Lithia Motors announced a quarterly dividend of 29 cents per share, marking year-over-year rise of 7%. The amount will be payable on May 25, 2018, to shareholders of record as of May 11, 2018.
Year to date, the company repurchased 90,000 shares. Further, Lithia Motors is left with $154 million under their existing $250-million share repurchase authorization.
Outlook
For 2018, Lithia Motors raised anticipated earnings to $10.6 per share, an increase from the prior expectation of $10.5. Further, the company expects revenues of $12-$12.5 billion compared with the previous anticipation of $11-$11.5 billion.
Zacks Rank & Other Key Picks
Lithia Motors sports a Zacks Rank #1 (Strong Buy). A few other top-ranked stocks in the auto space are BMW AG (BAMXF - Free Report) , Dana Incorporated (DAN - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BMW has expected long-term growth rate of 4.5%. Over a year, shares of the company have gained 13.7%.
Dana has expected long-term growth rate of 10%. Shares of the company have risen 28.1% in the past year.
Allison Transmission has expected long-term growth rate of 10%. Over a year, shares of the company have gained 0.7%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>