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Lithia (LAD) Buys 13 Car Dealerships From Priority Automotive
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Lithia Motors, Inc. (LAD - Free Report) purchased 13 car dealerships from the Priority Automotive Group in Virginia to expand its footprint in the booming Mid-Atlantic region. The deal will add three Honda, two Chevrolet, two Toyota, one Ford and one Hyundai stores, as well as a few small stores, to the American automotive retailer’s portfolio. These dealerships are projected to generate over $1.2 billion in annualized revenues.
Bryan DeBoer, president and CEO, Lithia, said that these stores will not only help the company cultivate long-term relationships with their customers in the region but will also allow them to reap the benefits of Priority Automotive’s strong track record of customer retention and commitment to community involvement.
The acquisition of stores was funded using Lithia’s on-balance sheet capacity.
With this buyout, Lithia has acquired more than $3.2 billion in annualized revenues this year, setting the stage for another solid year of acquisition growth. Last year, the company generated more than $3.5 billion in annualized revenues.
Lithia is currently on an acquisition spree. In March 2023, it purchased Jardine Motors Group to cash in on the latter’s strong track record and market position in the United Kingdom. Jardine is expected to generate more than $2 billion in annualized revenues.
Lithia’s diversified product mix and multiple income streams reduce its risk profile and position it for long-term top- and bottom-line growth. Despite current macroeconomic headwinds and industry challenges, the company believes that it is well placed to generate $50 billion in revenues and $55-$60 in earnings per share by 2025.
General Motors is one of the world’s largest automakers. The Zacks Consensus Estimate for GM’s 2023 sales indicates year-over-year growth of 4.5%.
Stellantis, an Italian-American automaker, is one of the noted names in the auto space. The Zacks Consensus Estimate for STLA’s 2023 sales indicates year-over-year growth of 13.4%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 90.7%, respectively.
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Lithia (LAD) Buys 13 Car Dealerships From Priority Automotive
Lithia Motors, Inc. (LAD - Free Report) purchased 13 car dealerships from the Priority Automotive Group in Virginia to expand its footprint in the booming Mid-Atlantic region. The deal will add three Honda, two Chevrolet, two Toyota, one Ford and one Hyundai stores, as well as a few small stores, to the American automotive retailer’s portfolio. These dealerships are projected to generate over $1.2 billion in annualized revenues.
Bryan DeBoer, president and CEO, Lithia, said that these stores will not only help the company cultivate long-term relationships with their customers in the region but will also allow them to reap the benefits of Priority Automotive’s strong track record of customer retention and commitment to community involvement.
The acquisition of stores was funded using Lithia’s on-balance sheet capacity.
With this buyout, Lithia has acquired more than $3.2 billion in annualized revenues this year, setting the stage for another solid year of acquisition growth. Last year, the company generated more than $3.5 billion in annualized revenues.
Lithia is currently on an acquisition spree. In March 2023, it purchased Jardine Motors Group to cash in on the latter’s strong track record and market position in the United Kingdom. Jardine is expected to generate more than $2 billion in annualized revenues.
Lithia’s diversified product mix and multiple income streams reduce its risk profile and position it for long-term top- and bottom-line growth. Despite current macroeconomic headwinds and industry challenges, the company believes that it is well placed to generate $50 billion in revenues and $55-$60 in earnings per share by 2025.
Zacks Rank & Key Picks
LAD currently carries a Zacks Rank #3 (Hold).
Some top-ranked players in the auto space are General Motors (GM - Free Report) , Stellantis N.V. (STLA - Free Report) and Wabash National (WNC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
General Motors is one of the world’s largest automakers. The Zacks Consensus Estimate for GM’s 2023 sales indicates year-over-year growth of 4.5%.
Stellantis, an Italian-American automaker, is one of the noted names in the auto space. The Zacks Consensus Estimate for STLA’s 2023 sales indicates year-over-year growth of 13.4%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 90.7%, respectively.