We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Share price of Lithia Motors Inc. (LAD - Free Report) increased 0.7% to $86.29 on Jul 29 after the company reported better-than-expected bottom-line results for second-quarter 2016. Lithia Motors recorded a 5.4% rise in adjusted earnings per share to $1.96 in the second quarter of 2016 from $1.86 earned in the prior-year quarter. Earnings also surpassed the Zacks Consensus Estimate of $1.95. Adjusted net income rose 1.6% to $50.2 million from $49.4 million in the year-ago quarter.
Net income, on a reported basis, was $51.4 million or $2.01 per share compared with $51.2 million or $1.93 per share in the second quarter of 2015.
Revenues for the reported quarter went up 6.8% to $2.13 billion from $2 billion in the year-ago quarter. However, revenues missed the Zacks Consensus Estimate of $2.18 billion.
Revenues from new vehicle retail sales increased 5.2% to $1.2 billion in the quarter. New vehicle retail sales volume improved 2.7% to 36,059 units. Revenues per vehicle rose 2.4% to $33,529.
Revenues from used vehicle retail increased 13.3% to $553.6 million in the quarter. Revenues from used vehicle wholesale dipped 0.1% to $66.7 million. Used vehicle retail sales volume improved 12.3% to 27,716 units, with revenues per vehicle rising 0.9% to $19,976.
Revenues from service body and parts went up 10.7% to $202.3 million. Meanwhile, the company’s finance and insurance business recorded an 11.8% rise in revenues to $81.04 million. Revenues from fleet and other decreased 43.7% to $20.6 million.
Gross profit increased 8.2% to $322 million in the reported quarter from $297.6 million in the year-ago quarter. Operating income improved 5.7% to $90.5 million from $85.6 million in the second quarter of 2015.
Revenues at the Domestic segment increased 7.6% to $826.7 million as retail new vehicle unit sales rose 1.4% to 11,634 vehicles. The segment’s income declined 11.8% to $27.6 million in the quarter under review.
Revenues at the Import segment went up 9.2% to $934 million on a 4.2% rise in retail new vehicle unit sales to 20,158 automobiles. Segment income improved 0.3% to $28.2 million in the reported quarter.
Revenues at the Luxury segment dipped 0.2% to $371.9 billion. Retail new vehicle sales declined 0.3% to 4,317 luxury vehicles. Meanwhile, the segment's income fell 13% to $9.4 million in the quarter.
Financial Details
Lithia Motors had cash and cash equivalents of $15.04 million as of Jun 30, 2016, down from $45 million as of Dec 31, 2015. Total debt was $654.6 million as of Jun 30, 2016, compared with $645.4 million as of Dec 31, 2015.
Dividend & Share Repurchase
Lithia Motors announced a quarterly dividend of 25 cents per share. The dividend will be paid on Aug 26, to shareholders on record as of Aug 12, 2016.
In the first half of 2016, the company repurchased 1.2 million shares at an average price of $78.86 per share. Under the current share repurchase authorization of $250 million, Lithia Motors has around $201 million available for future repurchase.
Acquisition
In the second quarter of 2016, Lithia Motors completed the acquisition of a GMC Buick franchise in Helena, MT. With this, the company completed three acquisitions so far in 2016.
Outlook
Lithia Motors expects earnings in the range of $2.11−$2.15 per share for the third quarter of 2016. Also, the company anticipates earnings of $7.50–$7.65 per share for full-year 2016, up from the prior forecast of $7.30–$7.50.
Lithia Motors expects revenues between $8.5 billion and $8.6 billion for 2016, with a 3.5% increase in new vehicle sales and a 9.5% rise in used vehicle sales. Sales from service body and parts will likely increase 7.5% during the year.
The company further expects new vehicles sales to be around 17 million units in the coming years.
Zacks Rank
Lithia Motors currently carries a Zacks Rank #3 (Hold).
Some better-ranked automobile stocks include The Goodyear Tire & Rubber Company (GT - Free Report) , Johnson Controls Inc. (JCI - Free Report) and Gentex Corp. (GNTX - Free Report) , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lithia Motors' (LAD) Q2 Earnings Beat Estimates, Rise Y/Y
Share price of Lithia Motors Inc. (LAD - Free Report) increased 0.7% to $86.29 on Jul 29 after the company reported better-than-expected bottom-line results for second-quarter 2016. Lithia Motors recorded a 5.4% rise in adjusted earnings per share to $1.96 in the second quarter of 2016 from $1.86 earned in the prior-year quarter. Earnings also surpassed the Zacks Consensus Estimate of $1.95. Adjusted net income rose 1.6% to $50.2 million from $49.4 million in the year-ago quarter.
Net income, on a reported basis, was $51.4 million or $2.01 per share compared with $51.2 million or $1.93 per share in the second quarter of 2015.
Revenues for the reported quarter went up 6.8% to $2.13 billion from $2 billion in the year-ago quarter. However, revenues missed the Zacks Consensus Estimate of $2.18 billion.
Revenues from new vehicle retail sales increased 5.2% to $1.2 billion in the quarter. New vehicle retail sales volume improved 2.7% to 36,059 units. Revenues per vehicle rose 2.4% to $33,529.
Revenues from used vehicle retail increased 13.3% to $553.6 million in the quarter. Revenues from used vehicle wholesale dipped 0.1% to $66.7 million. Used vehicle retail sales volume improved 12.3% to 27,716 units, with revenues per vehicle rising 0.9% to $19,976.
Revenues from service body and parts went up 10.7% to $202.3 million. Meanwhile, the company’s finance and insurance business recorded an 11.8% rise in revenues to $81.04 million. Revenues from fleet and other decreased 43.7% to $20.6 million.
Gross profit increased 8.2% to $322 million in the reported quarter from $297.6 million in the year-ago quarter. Operating income improved 5.7% to $90.5 million from $85.6 million in the second quarter of 2015.
LITHIA MOTORS Price, Consensus and EPS Surprise
LITHIA MOTORS Price, Consensus and EPS Surprise | LITHIA MOTORS Quote
Segment Details
Revenues at the Domestic segment increased 7.6% to $826.7 million as retail new vehicle unit sales rose 1.4% to 11,634 vehicles. The segment’s income declined 11.8% to $27.6 million in the quarter under review.
Revenues at the Import segment went up 9.2% to $934 million on a 4.2% rise in retail new vehicle unit sales to 20,158 automobiles. Segment income improved 0.3% to $28.2 million in the reported quarter.
Revenues at the Luxury segment dipped 0.2% to $371.9 billion. Retail new vehicle sales declined 0.3% to 4,317 luxury vehicles. Meanwhile, the segment's income fell 13% to $9.4 million in the quarter.
Financial Details
Lithia Motors had cash and cash equivalents of $15.04 million as of Jun 30, 2016, down from $45 million as of Dec 31, 2015. Total debt was $654.6 million as of Jun 30, 2016, compared with $645.4 million as of Dec 31, 2015.
Dividend & Share Repurchase
Lithia Motors announced a quarterly dividend of 25 cents per share. The dividend will be paid on Aug 26, to shareholders on record as of Aug 12, 2016.
In the first half of 2016, the company repurchased 1.2 million shares at an average price of $78.86 per share. Under the current share repurchase authorization of $250 million, Lithia Motors has around $201 million available for future repurchase.
Acquisition
In the second quarter of 2016, Lithia Motors completed the acquisition of a GMC Buick franchise in Helena, MT. With this, the company completed three acquisitions so far in 2016.
Outlook
Lithia Motors expects earnings in the range of $2.11−$2.15 per share for the third quarter of 2016. Also, the company anticipates earnings of $7.50–$7.65 per share for full-year 2016, up from the prior forecast of $7.30–$7.50.
Lithia Motors expects revenues between $8.5 billion and $8.6 billion for 2016, with a 3.5% increase in new vehicle sales and a 9.5% rise in used vehicle sales. Sales from service body and parts will likely increase 7.5% during the year.
The company further expects new vehicles sales to be around 17 million units in the coming years.
Zacks Rank
Lithia Motors currently carries a Zacks Rank #3 (Hold).
Some better-ranked automobile stocks include The Goodyear Tire & Rubber Company (GT - Free Report) , Johnson Controls Inc. (JCI - Free Report) and Gentex Corp. (GNTX - Free Report) , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>