Lithia Motors Inc.’s (LAD - Free Report) shares gained 2.05% to close at $95.52 on Sep 30, after the company announced the acquisition of Greiner Ford Lincoln of Casper, WY. This is the largest standalone dealership in Wyoming. The latest buyout is expected to boost Lithia Motors’ revenues by $75 million annually.
With this, the combined annual revenue from the company’s acquisitions this year comes to almost $1 billion. This should significantly augment Lithia Motors’ revenues for 2016.
The company is benefiting from the expansion of its business through acquisitions and store openings. In Jan 2016, Lithia Motors announced the acquisition of Riverside Subaru in Riverside, CA. It will rename the store as DCH Subaru of Riverside. This store is expected to boost the company’s revenues by $45 million per annum.
In Feb 2016, Lithia Motors announced the acquisition of Ira Toyota/Scion of Milford, MA. The company will rename the newly acquired store as DCH Toyota/Scion of Milford. This store is likely to contribute $65 million to Lithia Motors’ revenues per annum.
In the second quarter of 2016, Lithia Motors completed the acquisition of a GMC Buick franchise in Helena, MT.
In Aug 2016, Lithia Motors announced the acquisition of Kemp Ford in Thousand Oaks in California, which will be renamed as DCH Ford of Thousand Oaks. The buyout is expected to boost the company’s revenues by $65 million annually.
In Sep 2016, Lithia Motors revealed that it was awarded a Volkswagen franchise in Freehold, NJ, which is its fourth store in Freehold. The store is expected to increase Lithia Motors’ revenues by $35 million annually, enhance its relation with Volkswagen and increase its presence in New Jersey.
Lithia Motors currently carries a Zacks Rank #3 (Hold).
Stocks that Warrant a Look
Some better-ranked auto stocks include Cooper-Standard Holdings Inc. (CPS - Free Report) ,Standard Motor Products Inc. (SMP - Free Report) and Douglas Dynamics, Inc. (PLOW - Free Report) .
Cooper-Standard has witnessed positive estimate revisions in the last 60 days. It also posted positive earnings surprises in the last four quarters, resulting in an average beat of 51.17%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Standard Motor Products, a Zacks Rank #1 stock, has witnessed positive estimate revisions in the last 60 days. The company has a long-term expected EPS growth rate of 15%, which is better than the industry average of 12.3%.
Douglas Dynamics has seen its estimates move north in the last 60 days. The stock sports a Zacks Rank #1.
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