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Lithia Motors (LAD) Down 0.1% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Lithia Motors (LAD - Free Report) . Shares have lost about 0.1% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Lithia Motors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Lithia Motors Puts Up a Stellar Show in Q4
Lithia Motors reported reported fourth-quarter 2020 adjusted earnings of $5.46 per share, which beat the Zacks Consensus Estimate of $5.05. Higher-than-expected revenues across all units but one led to the outperformance. The bottom line also increased a whopping 85% from the prior-year quarter’s $2.95 per share. Total revenues rose 20.6% year over year to $3,941.8 million. Moreover, the top line surpassed the Zacks Consensus Estimate of $3,921 million. In fact, for the reported quarter, Lithia Motors claims to have reported the highest quarterly revenues in the company's history.
Segmental Performance
New vehicle retail revenues increased 19% year over year to $2,149.4 million and topped the Zacks Consensus Estimate of $2,114 million. New vehicle units sold climbed 13% from the prior-year quarter to 52,469. The average selling price of new-vehicle retail rose 5.4% from the prior-year quarter to $40,965.
Used-vehicle retail revenues rose 23.9% year over year to $1,108.7 million and beat the Zacks Consensus Estimate by a whisker. Used-vehicle retail units sold grew 11.7% from the year-ago quarter to 47.731. The average selling price of used-vehicle retail improved 11% to $23,229 from the year-ago figure of $20,934. Revenues from used-vehicle wholesale surged 35.6% year over year to $91.8 million and surpassed the consensus mark of $78 million.
Revenues from service, body and parts were up 15.7% from the prior-year period to $383.9 million but fell shy of the Zacks Consensus Estimate of $387 million. The company’s F&I (Finance & Insurance) business recorded 26.9% year-over-year growth in revenues to $172.6 million, marginally topping the consensus estimate of $170 million. Revenues from fleet and others were $35.4 million, which increased 7.3% year over year, and surpassed the consensus mark of $31.70 million.
While same-store new vehicle sales edged up 0.4% year over year, same-store used vehicle retail sales increased 8.5%. While same-store revenues from the F&I business rose 3.9%, the same from the service, body and parts unit dropped 2.8% from the prior-year quarter.
Financial Tidbits
Cost of sales increased 18.9% year over year for fourth-quarter 2020. SG&A, as a percentage of gross profit, increased from the prior-year level. Nonetheless, pretax and net profit margins improved from the year-ago levels.
Quarterly dividend of 31 cents a share will be payable on Mar 26 to shareholders of record as of Mar 12, 2021.
Lithia had cash and cash equivalents of $160.2 million as of Dec 31, 2020. Long-term debt was $2,064.7 million, marking an increase from $1,430 million as of Dec 31, 2019.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 49.68% due to these changes.
VGM Scores
Currently, Lithia Motors has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Lithia Motors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Lithia Motors (LAD) Down 0.1% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Lithia Motors (LAD - Free Report) . Shares have lost about 0.1% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Lithia Motors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Lithia Motors Puts Up a Stellar Show in Q4
Lithia Motors reported reported fourth-quarter 2020 adjusted earnings of $5.46 per share, which beat the Zacks Consensus Estimate of $5.05. Higher-than-expected revenues across all units but one led to the outperformance. The bottom line also increased a whopping 85% from the prior-year quarter’s $2.95 per share. Total revenues rose 20.6% year over year to $3,941.8 million. Moreover, the top line surpassed the Zacks Consensus Estimate of $3,921 million. In fact, for the reported quarter, Lithia Motors claims to have reported the highest quarterly revenues in the company's history.
Segmental Performance
New vehicle retail revenues increased 19% year over year to $2,149.4 million and topped the Zacks Consensus Estimate of $2,114 million. New vehicle units sold climbed 13% from the prior-year quarter to 52,469. The average selling price of new-vehicle retail rose 5.4% from the prior-year quarter to $40,965.
Used-vehicle retail revenues rose 23.9% year over year to $1,108.7 million and beat the Zacks Consensus Estimate by a whisker. Used-vehicle retail units sold grew 11.7% from the year-ago quarter to 47.731. The average selling price of used-vehicle retail improved 11% to $23,229 from the year-ago figure of $20,934. Revenues from used-vehicle wholesale surged 35.6% year over year to $91.8 million and surpassed the consensus mark of $78 million.
Revenues from service, body and parts were up 15.7% from the prior-year period to $383.9 million but fell shy of the Zacks Consensus Estimate of $387 million. The company’s F&I (Finance & Insurance) business recorded 26.9% year-over-year growth in revenues to $172.6 million, marginally topping the consensus estimate of $170 million. Revenues from fleet and others were $35.4 million, which increased 7.3% year over year, and surpassed the consensus mark of $31.70 million.
While same-store new vehicle sales edged up 0.4% year over year, same-store used vehicle retail sales increased 8.5%. While same-store revenues from the F&I business rose 3.9%, the same from the service, body and parts unit dropped 2.8% from the prior-year quarter.
Financial Tidbits
Cost of sales increased 18.9% year over year for fourth-quarter 2020. SG&A, as a percentage of gross profit, increased from the prior-year level. Nonetheless, pretax and net profit margins improved from the year-ago levels.
Quarterly dividend of 31 cents a share will be payable on Mar 26 to shareholders of record as of Mar 12, 2021.
Lithia had cash and cash equivalents of $160.2 million as of Dec 31, 2020. Long-term debt was $2,064.7 million, marking an increase from $1,430 million as of Dec 31, 2019.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 49.68% due to these changes.
VGM Scores
Currently, Lithia Motors has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Lithia Motors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.