Lithia Motors, Inc. (LAD - Free Report) reported adjusted earnings per share of $2.95 in fourth-quarter 2019, marking a 15% increase from the prior-year quarter’s $2.57. However, the bottom line missed the Zacks Consensus Estimate of $3.08. Lower-than-anticipated revenues from new-vehicle retail and used-vehicle wholesale businesses resulted in the underperformance.
Total revenues grew 9.9% year over year to $3,269 million. The figure also outpaced the Zacks Consensus Estimate of $3,256 million. Total same-store sales grew 7% year over year .Gross profit rose 12.8% to $498.6 million in the reported quarter from $441.9 million in the year-ago period.
Key Takeaways
Revenues from new-vehicle retail grew 7% year over year to $1,805.8 million but missed the Zacks Consensus Estimate of $1,832 million. New-vehicle retail units sold increased 2.6% from the prior-year quarter to 46,422. The average selling price of new-vehicle retail rose 4.3% year over to year to $38,884.
Used-vehicle retail revenues rose 18.8% year over year to $894.7 million. Revenues from used-vehicle wholesale declined 13.3% year over year to $67.7 million and missed the consensus mark of $81 million. Used-vehicle retail units sold grew 17.8% from the year-ago quarter to 42,740. The average selling price of used-vehicle retail improved 0.8% to $20,934 from the year-ago figure of $20,771.
Revenues from service, body and parts were up 5.7% from the prior-year period to $331.8 million. The company’s F&I business recorded 20.6% year-over-year growth in revenues to $136 million. Revenues from fleet and others were $33 million, up 23.6% year over year.
Dividend & Financial Position
Lithia Motors’ board approved a dividend of 30 cents per share for fourth-quarter 2019. The amount will be payable Mar 27 to its shareholders of record as of Mar 13, 2020.
Lithia Motors had cash and cash equivalents of $84 million as of Dec 31, 2019, up from $31.6 million in the corresponding period of 2018. Long-term debt was $1.43 billion as of Dec 30, 2019, marking an increase from $1.36 billion recorded in the comparable period of 2018. Debt-to-capital ratio stands at 49%.
Zacks Rank & Key Picks
Lithia Motors currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto sector include Gentherm Inc (THRM - Free Report) , Gentex Corporation (GNTX - Free Report) and SPX Corporation (SPXC - Free Report) . While Gentherm sports a Zacks Rank #1 (Strong Buy), Gentex and SPX carry a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gentherm has a projected earnings growth rate of 20.6% for the current year. Its shares have gained 13.5% over the past year.
Gentex has an estimated earnings growth rate of 6% for 2020. The company’s shares have appreciated 55.1% in a year’s time.
SPX has an expected earnings growth rate of 8.1% for the current year. The stock has rallied 61.1% in the past year.
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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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.
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Lithia Motors, Inc. (LAD - Free Report) reported adjusted earnings per share of $2.95 in fourth-quarter 2019, marking a 15% increase from the prior-year quarter’s $2.57. However, the bottom line missed the Zacks Consensus Estimate of $3.08. Lower-than-anticipated revenues from new-vehicle retail and used-vehicle wholesale businesses resulted in the underperformance.
Total revenues grew 9.9% year over year to $3,269 million. The figure also outpaced the Zacks Consensus Estimate of $3,256 million. Total same-store sales grew 7% year over year .Gross profit rose 12.8% to $498.6 million in the reported quarter from $441.9 million in the year-ago period.
Key Takeaways
Revenues from new-vehicle retail grew 7% year over year to $1,805.8 million but missed the Zacks Consensus Estimate of $1,832 million. New-vehicle retail units sold increased 2.6% from the prior-year quarter to 46,422. The average selling price of new-vehicle retail rose 4.3% year over to year to $38,884.
Used-vehicle retail revenues rose 18.8% year over year to $894.7 million. Revenues from used-vehicle wholesale declined 13.3% year over year to $67.7 million and missed the consensus mark of $81 million. Used-vehicle retail units sold grew 17.8% from the year-ago quarter to 42,740. The average selling price of used-vehicle retail improved 0.8% to $20,934 from the year-ago figure of $20,771.
Revenues from service, body and parts were up 5.7% from the prior-year period to $331.8 million. The company’s F&I business recorded 20.6% year-over-year growth in revenues to $136 million. Revenues from fleet and others were $33 million, up 23.6% year over year.
Dividend & Financial Position
Lithia Motors’ board approved a dividend of 30 cents per share for fourth-quarter 2019. The amount will be payable Mar 27 to its shareholders of record as of Mar 13, 2020.
Lithia Motors had cash and cash equivalents of $84 million as of Dec 31, 2019, up from $31.6 million in the corresponding period of 2018. Long-term debt was $1.43 billion as of Dec 30, 2019, marking an increase from $1.36 billion recorded in the comparable period of 2018. Debt-to-capital ratio stands at 49%.
Zacks Rank & Key Picks
Lithia Motors currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto sector include Gentherm Inc (THRM - Free Report) , Gentex Corporation (GNTX - Free Report) and SPX Corporation (SPXC - Free Report) . While Gentherm sports a Zacks Rank #1 (Strong Buy), Gentex and SPX carry a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gentherm has a projected earnings growth rate of 20.6% for the current year. Its shares have gained 13.5% over the past year.
Gentex has an estimated earnings growth rate of 6% for 2020. The company’s shares have appreciated 55.1% in a year’s time.
SPX has an expected earnings growth rate of 8.1% for the current year. The stock has rallied 61.1% in the past year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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 >>
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