Lithia Motors, Inc. (LAD - Free Report) recently bolstered its footprint in Texas with the purchase of Meador Chrysler, Dodge, Jeep, Ram (“CDJR”), the second largest CDJR dealership in the Dallas/Fort Worth area.
Meador CDJR is a reputed player delivering exceptional service. It is located in Fort Worth and serves the greater Dallas-Fort Worth area. Lithia expects the dealership to generate more than $200 million in annualized revenues, bringing LAD's total expected annualized revenue acquired in 2022 to more than $3.3 billion. The acquisition is part of LAD's nationwide network expansion initiative under the company's 2025 plan, where it has set a target to reach $50 billion in revenues and earnings per share (EPS) in the range of $55-$65.
Lithia’s strategic buyouts are helping the auto retailer increase its market share and boost its portfolio. The spree of acquisitions brought Lithia's total expected annualized revenue acquired to $7 billion in 2021, keeping it ahead of schedule laid out in the five-year plan rolled out in July 2020. Its total expected annualized revenue acquired in 2022 has reached $3.1 billion. In the third quarter of 2022, Lithia acquired a portfolio in Wisconsin from the Wilde Group, which is projected to generate $625 million in annualized revenues.
In third-quarter of 2022, Lithia reported adjusted earnings of $4.61 per share, increasing 3% year over year. Higher-than-expected gross profit in the Retail Automotive and Retail Commercial Truck segments resulted in this outperformance. The auto retailer registered net sales of $6,920.7 million that rose 7% from the year-ago quarter’s levels.
Shares of LAD have lost 16.8% over a year against the industry’s 0.9% rise.
Zacks Rank & Key Picks
LAD currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked players in the auto space – CarParts.com (PRTS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Allison Transmission Holdings (ALSN - Free Report) and Genuine Parts Company (GPC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
CarParts has an expected earnings growth rate of 85% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 72.7% upward over the past 30 days.
Allison has an expected earnings growth rate of 26.1% for the current year. The Zacks Consensus Estimate for ALSN’s current-year earnings has been revised 0.6% upward in the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 0.2% downward in the past 30 days.
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Lithia Motors, Inc. (LAD - Free Report) recently bolstered its footprint in Texas with the purchase of Meador Chrysler, Dodge, Jeep, Ram (“CDJR”), the second largest CDJR dealership in the Dallas/Fort Worth area.
Meador CDJR is a reputed player delivering exceptional service. It is located in Fort Worth and serves the greater Dallas-Fort Worth area. Lithia expects the dealership to generate more than $200 million in annualized revenues, bringing LAD's total expected annualized revenue acquired in 2022 to more than $3.3 billion. The acquisition is part of LAD's nationwide network expansion initiative under the company's 2025 plan, where it has set a target to reach $50 billion in revenues and earnings per share (EPS) in the range of $55-$65.
Lithia’s strategic buyouts are helping the auto retailer increase its market share and boost its portfolio. The spree of acquisitions brought Lithia's total expected annualized revenue acquired to $7 billion in 2021, keeping it ahead of schedule laid out in the five-year plan rolled out in July 2020. Its total expected annualized revenue acquired in 2022 has reached $3.1 billion. In the third quarter of 2022, Lithia acquired a portfolio in Wisconsin from the Wilde Group, which is projected to generate $625 million in annualized revenues.
In third-quarter of 2022, Lithia reported adjusted earnings of $4.61 per share, increasing 3% year over year. Higher-than-expected gross profit in the Retail Automotive and Retail Commercial Truck segments resulted in this outperformance. The auto retailer registered net sales of $6,920.7 million that rose 7% from the year-ago quarter’s levels.
Shares of LAD have lost 16.8% over a year against the industry’s 0.9% rise.
Zacks Rank & Key Picks
LAD currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked players in the auto space – CarParts.com (PRTS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Allison Transmission Holdings (ALSN - Free Report) and Genuine Parts Company (GPC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
CarParts has an expected earnings growth rate of 85% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 72.7% upward over the past 30 days.
Allison has an expected earnings growth rate of 26.1% for the current year. The Zacks Consensus Estimate for ALSN’s current-year earnings has been revised 0.6% upward in the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 0.2% downward in the past 30 days.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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