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Lithia Motors, Inc. (LAD - Free Report) reported adjusted earnings per share of $2.83 in third-quarter 2018, increasing from $2.18 in the prior-year quarter. Further, the bottom line beat the Zacks Consensus Estimate of $2.58.
Reportedly, in the quarter under review, net income rose 79% year over year to $93 million. Revenues in the quarter totaled $3.09 billion, missing the Zacks Consensus Estimate of $3.24 billion. However, on a year-over-year basis, revenues increased 15.4%.
Gross profit increased 15.7% to $466.2 million in the quarter under review from $403 million a year ago.
Lithia Motors, Inc. Price, Consensus and EPS Surprise
Revenues from new-vehicle retail rose 11.6% to $1.73 billion in the reported quarter. New-vehicle retail sales volume expanded 7.3% to 48,790 units. The average selling price of new-vehicle retail sales rose 3.9% to $35,519 from the year-ago figure of $34,179.
Used-vehicle retail revenues increased 18.7% to $805.9 million in the quarter under review while revenues from used-vehicle wholesale rose 39.9% to $91,956 million. Used-vehicle retail sales volume improved 14.5% to 39,751 units. The average selling price of used-vehicle retail sales gained 3.6% to $20,274 from the year-ago figure of $19,563.
Revenues from service body and parts went up 17.2% to $311.3 million. The company’s finance and insurance business recorded 19.8% rise in revenues to $121.1 million. Revenues from fleet and others increased 89.2% to $28.7 million.
Acquisitions & Divestments
In third-quarter 2018, the company added Chrysler Jeep Dodge location in Calallen, TX, while separated a Subaru franchise into a stand-alone facility in Utica, NY.
In September, the company announced that it completed the divestiture of six stores.
Financial Details
Lithia Motors had cash and cash equivalents of $31.4 million as of Sep 30, 2018, down from $57.3 million as of Dec 31, 2017. Long-term debt was $1.29 billion as of Sep 30, 2018, compared with $1.03 billion as of Dec 31, 2017.
Dividend & Share Repurchases
Lithia Motors approved a quarterly dividend of 29 cents per share. The amount will be payable on Nov 23, 2018, to shareholders of record as of Nov 9, 2018.
Year to date, the company has repurchased around 1.6 million shares. Further, Lithia Motors is left with $18 million under its existing $250-million share repurchase authorization.
Outlook
For 2018, Lithia Motors reiterated revenues and earnings outlook. For 2018, the company expects revenues of $11.75-$12.25 billion. It anticipates earnings per share of $9.50 for 2018.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 12.8%.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have risen 40.3%.
AutoZone has an expected long-term growth rate of 12.2%. Over the past two years, shares of the company have risen 17.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Lithia Motors (LAD) Q3 Earnings Beat Estimates, Improve Y/Y
Lithia Motors, Inc. (LAD - Free Report) reported adjusted earnings per share of $2.83 in third-quarter 2018, increasing from $2.18 in the prior-year quarter. Further, the bottom line beat the Zacks Consensus Estimate of $2.58.
Reportedly, in the quarter under review, net income rose 79% year over year to $93 million. Revenues in the quarter totaled $3.09 billion, missing the Zacks Consensus Estimate of $3.24 billion. However, on a year-over-year basis, revenues increased 15.4%.
Gross profit increased 15.7% to $466.2 million in the quarter under review from $403 million a year ago.
Lithia Motors, Inc. Price, Consensus and EPS Surprise
Lithia Motors, Inc. Price, Consensus and EPS Surprise | Lithia Motors, Inc. Quote
Quarter in Details
Revenues from new-vehicle retail rose 11.6% to $1.73 billion in the reported quarter. New-vehicle retail sales volume expanded 7.3% to 48,790 units. The average selling price of new-vehicle retail sales rose 3.9% to $35,519 from the year-ago figure of $34,179.
Used-vehicle retail revenues increased 18.7% to $805.9 million in the quarter under review while revenues from used-vehicle wholesale rose 39.9% to $91,956 million. Used-vehicle retail sales volume improved 14.5% to 39,751 units. The average selling price of used-vehicle retail sales gained 3.6% to $20,274 from the year-ago figure of $19,563.
Revenues from service body and parts went up 17.2% to $311.3 million. The company’s finance and insurance business recorded 19.8% rise in revenues to $121.1 million. Revenues from fleet and others increased 89.2% to $28.7 million.
Acquisitions & Divestments
In third-quarter 2018, the company added Chrysler Jeep Dodge location in Calallen, TX, while separated a Subaru franchise into a stand-alone facility in Utica, NY.
In September, the company announced that it completed the divestiture of six stores.
Financial Details
Lithia Motors had cash and cash equivalents of $31.4 million as of Sep 30, 2018, down from $57.3 million as of Dec 31, 2017. Long-term debt was $1.29 billion as of Sep 30, 2018, compared with $1.03 billion as of Dec 31, 2017.
Dividend & Share Repurchases
Lithia Motors approved a quarterly dividend of 29 cents per share. The amount will be payable on Nov 23, 2018, to shareholders of record as of Nov 9, 2018.
Year to date, the company has repurchased around 1.6 million shares. Further, Lithia Motors is left with $18 million under its existing $250-million share repurchase authorization.
Outlook
For 2018, Lithia Motors reiterated revenues and earnings outlook. For 2018, the company expects revenues of $11.75-$12.25 billion. It anticipates earnings per share of $9.50 for 2018.
Zacks Rank & Key Picks
Lithia Motors has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Advance Auto Parts, Inc. (AAP - Free Report) and AutoZone, Inc. (AZO - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 12.8%.
Advance Auto Parts has an expected long-term growth rate of 12.3%. Over the past six months, shares of the company have risen 40.3%.
AutoZone has an expected long-term growth rate of 12.2%. Over the past two years, shares of the company have risen 17.8%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>