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Lithia (LAD) CDJR Dealership Buyout Expands its Texas Footprint
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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.
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 (LAD) CDJR Dealership Buyout Expands its Texas Footprint
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.
Image Source: Zacks Investment Research
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.