Lithia Motors Inc. (LAD - Free Report) reported adjusted earnings per share of $2.18 in the third quarter of 2017, increasing from $2.06 in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate of $2.39.
Reportedly, adjusted net income rose 5% to $54.8 million from $52 million in the year-ago quarter.
Revenues in the reported quarter were $2.69 billion, up from $2.27 billion in the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $2.68 billion.
Lithia Motors, Inc. Price, Consensus and EPS Surprise
Revenues from new vehicle retail rallied 20% to $1.56 billion in the quarter. New vehicle retail sales volume expanded 18.6% to 45,570 units. Revenues per vehicle inched up 1.2% to $34,169.
Used vehicle retail revenues increased 17% to $679.6 million in the quarter, whereas revenues from used vehicle wholesale nudged up 0.6% to $75.7 million. Used vehicle retail sales volume improved 17.2% to 34,737 units with revenues per vehicle slipping 0.2% to $19,565.
Revenues from service body and parts went up 22.4% to $265.7 million. The company’s finance and insurance business recorded a 15.2% rise in revenues to $101 million. Revenues from fleet and others surged 32.7% to $15.19 million.
Gross profit climbed 19.5% to $403 million in the reported quarter from $337.3 million in the year-ago quarter.
Segment Details
Domestic segment revenues jumped 13.6% to $1 billion on a 10% rise in retail new vehicle unit sales to 14,004 automobiles. However, the segment’s income declined 3.6% to $31.1 million in the quarter under review.
Import segment revenues shot up 18.4% to $1.2 billion on a 24.1% rise in retail new vehicle unit sales to 26,643 automobiles. Segment income increased 12.2% to $37 million in the reported quarter.
Revenues at the Luxury segment rose 18.6% to $465.4 million. Retail new vehicle sales increased 17.4% to 5,032 luxury vehicles. The segment’s income rose 1.2% to $7.5 million in the quarter.
Acquisition
In May, the company completed the acquisition of Downtown Los Angeles (DTLA) Auto Group in downtown Los Angeles, CA as well as a Nissan store at Carson, CA. Acquisition of DTLA helped Lithia gain stores of Audi, Mercedes-Benz, Nissan, Porsche, Toyota and Volkswagen.
Financial Details
Lithia Motors had cash and cash equivalents of $38.6 million as of Sep 30, 2017, down from $50.3 million as of Dec 31, 2016. Long-term debt was $991.3 million as of Sep 30, 2017 compared with $769.9 million as of Dec 31, 2016.
Dividend
Lithia Motors announced a quarterly dividend of 27 cents per share, expectedly payable on Nov 24 to shareholders of record as of Nov 10, 2017.
Outlook
Lithia Motors raised the anticipated earnings range to $8.3-$8.35, up from $8.05-$8.35 per share for full-year 2017. The company expects to generate revenues within the range of $10-$10.2 billion compared with the previously guided band of $9.2-$9.4 billion for 2017.
For fiscal 2018, the revenue is expected in the $11-$11.5 billion range and earnings per share of $9.25.
Zacks Rank & Key Picks
Lithia Motors currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include Autoliv, Inc. (ALV - Free Report) , BorgWarner Inc. (BWA - Free Report) and Cummins Inc. (CMI - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Autoliv has an expected long-term growth rate of 8.7%.
BorgWarner has an expected long-term growth rate of 8.9%.
Cummins has an expected long-term growth rate of 12%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Lithia Motors Inc. (LAD - Free Report) reported adjusted earnings per share of $2.18 in the third quarter of 2017, increasing from $2.06 in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate of $2.39.
Reportedly, adjusted net income rose 5% to $54.8 million from $52 million in the year-ago quarter.
Revenues in the reported quarter were $2.69 billion, up from $2.27 billion in the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $2.68 billion.
Lithia Motors, Inc. Price, Consensus and EPS Surprise
Revenues from new vehicle retail rallied 20% to $1.56 billion in the quarter. New vehicle retail sales volume expanded 18.6% to 45,570 units. Revenues per vehicle inched up 1.2% to $34,169.
Used vehicle retail revenues increased 17% to $679.6 million in the quarter, whereas revenues from used vehicle wholesale nudged up 0.6% to $75.7 million. Used vehicle retail sales volume improved 17.2% to 34,737 units with revenues per vehicle slipping 0.2% to $19,565.
Revenues from service body and parts went up 22.4% to $265.7 million. The company’s finance and insurance business recorded a 15.2% rise in revenues to $101 million. Revenues from fleet and others surged 32.7% to $15.19 million.
Gross profit climbed 19.5% to $403 million in the reported quarter from $337.3 million in the year-ago quarter.
Segment Details
Domestic segment revenues jumped 13.6% to $1 billion on a 10% rise in retail new vehicle unit sales to 14,004 automobiles. However, the segment’s income declined 3.6% to $31.1 million in the quarter under review.
Import segment revenues shot up 18.4% to $1.2 billion on a 24.1% rise in retail new vehicle unit sales to 26,643 automobiles. Segment income increased 12.2% to $37 million in the reported quarter.
Revenues at the Luxury segment rose 18.6% to $465.4 million. Retail new vehicle sales increased 17.4% to 5,032 luxury vehicles. The segment’s income rose 1.2% to $7.5 million in the quarter.
Acquisition
In May, the company completed the acquisition of Downtown Los Angeles (DTLA) Auto Group in downtown Los Angeles, CA as well as a Nissan store at Carson, CA. Acquisition of DTLA helped Lithia gain stores of Audi, Mercedes-Benz, Nissan, Porsche, Toyota and Volkswagen.
Financial Details
Lithia Motors had cash and cash equivalents of $38.6 million as of Sep 30, 2017, down from $50.3 million as of Dec 31, 2016. Long-term debt was $991.3 million as of Sep 30, 2017 compared with $769.9 million as of Dec 31, 2016.
Dividend
Lithia Motors announced a quarterly dividend of 27 cents per share, expectedly payable on Nov 24 to shareholders of record as of Nov 10, 2017.
Outlook
Lithia Motors raised the anticipated earnings range to $8.3-$8.35, up from $8.05-$8.35 per share for full-year 2017. The company expects to generate revenues within the range of $10-$10.2 billion compared with the previously guided band of $9.2-$9.4 billion for 2017.
For fiscal 2018, the revenue is expected in the $11-$11.5 billion range and earnings per share of $9.25.
Zacks Rank & Key Picks
Lithia Motors currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include Autoliv, Inc. (ALV - Free Report) , BorgWarner Inc. (BWA - Free Report) and Cummins Inc. (CMI - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Autoliv has an expected long-term growth rate of 8.7%.
BorgWarner has an expected long-term growth rate of 8.9%.
Cummins has an expected long-term growth rate of 12%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on ALV - FREE
Get the latest research report on BWA - FREE
Get the latest research report on CMI - FREE
Get the latest research report on LAD - FREE