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Lithia (LAD) Expands Network on 2 Southern California Stores' Buyout
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Lithia Motors, Inc. (LAD - Free Report) recently announced the acquisition of two luxury dealerships in Van Nuys, CA, being BMW of Sherman Oaks and Acura of Sherman Oaks. Both stores serve the greater Los Angeles area.
The transaction has expanded Lithia’s footprint to Southern California as the BMW store is Lithia’s first store in Southern California. Moreover, the buyout is anticipated to add $185 million in combined annualized revenues. The transaction has been financed through existing on-balance sheet capacity.
Lithia is highly optimistic about this buyout. These franchises would perfectly supplement the company’s existing product portfolio. In fact, the buyout aligns with Lithia’s plan to fortify the reach and density of its network to serve customers more conveniently. In addition, BMW’s unparalleled commitment to providing the highest level of customer service will further enhance Lithia’s offerings.
Lithia had earlier announced a five-year plan to yield $50 billion in revenues and $50 in earnings per share. Since the plan’s roll-out, the retailer has achieved $7.1 billion in total expected annualized revenues acquired. The company is well ahead its schedule of network expansion per management’s five-year plan. Lithia’s buyouts are, in fact, primarily focused in the Southeast and Central regions where its existing network distribution is the lightest.
The company’s expanding network density is essential to conveniently and affordably cater to customer needs throughout the vehicle ownership lifecycle.
Lithia is one of the leading automotive retailers of new and used vehicles, and related services in the United States. It offers tailored services complemented through its nationwide network. The buyout of the two dealerships is in sync with the auto retailer’s proven success strategy of acquiring strong, high-performing franchises.
Lithia’s diversified product mix and multiple streams of income reduce the risk profile of the firm. The company generates income from businesses, including used and new vehicle retail, finance, insurance, as well as automotive repair and maintenance. The diversified portfolio positions it well for top- and bottom-line growth.
Lithia currently carries a Zacks Rank #3 (Hold). The company put up a stellar show in the first quarter of 2021, delivering earnings of $5.89 per share, up a whopping 193% from the year-ago level.
Shares of the company have surged 163% in the past year compared with the industry’s rally of 130.8% during the same period.
Image Source: Zacks Investment Research
Key Picks
Better-ranked stocks in the auto space include American Axle (AXL - Free Report) , BMW AG (BAMXF - Free Report) , and Harley-Davidson (HOG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
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Lithia (LAD) Expands Network on 2 Southern California Stores' Buyout
Lithia Motors, Inc. (LAD - Free Report) recently announced the acquisition of two luxury dealerships in Van Nuys, CA, being BMW of Sherman Oaks and Acura of Sherman Oaks. Both stores serve the greater Los Angeles area.
The transaction has expanded Lithia’s footprint to Southern California as the BMW store is Lithia’s first store in Southern California. Moreover, the buyout is anticipated to add $185 million in combined annualized revenues. The transaction has been financed through existing on-balance sheet capacity.
Lithia is highly optimistic about this buyout. These franchises would perfectly supplement the company’s existing product portfolio. In fact, the buyout aligns with Lithia’s plan to fortify the reach and density of its network to serve customers more conveniently. In addition, BMW’s unparalleled commitment to providing the highest level of customer service will further enhance Lithia’s offerings.
Lithia had earlier announced a five-year plan to yield $50 billion in revenues and $50 in earnings per share. Since the plan’s roll-out, the retailer has achieved $7.1 billion in total expected annualized revenues acquired. The company is well ahead its schedule of network expansion per management’s five-year plan. Lithia’s buyouts are, in fact, primarily focused in the Southeast and Central regions where its existing network distribution is the lightest.
The company’s expanding network density is essential to conveniently and affordably cater to customer needs throughout the vehicle ownership lifecycle.
Lithia is one of the leading automotive retailers of new and used vehicles, and related services in the United States. It offers tailored services complemented through its nationwide network. The buyout of the two dealerships is in sync with the auto retailer’s proven success strategy of acquiring strong, high-performing franchises.
Lithia’s diversified product mix and multiple streams of income reduce the risk profile of the firm. The company generates income from businesses, including used and new vehicle retail, finance, insurance, as well as automotive repair and maintenance. The diversified portfolio positions it well for top- and bottom-line growth.
Lithia currently carries a Zacks Rank #3 (Hold). The company put up a stellar show in the first quarter of 2021, delivering earnings of $5.89 per share, up a whopping 193% from the year-ago level.
Shares of the company have surged 163% in the past year compared with the industry’s rally of 130.8% during the same period.
Key Picks
Better-ranked stocks in the auto space include American Axle (AXL - Free Report) , BMW AG (BAMXF - Free Report) , and Harley-Davidson (HOG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>