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Lithia Motors' (LAD) Q2 Earnings Lag Estimates, Improve Y/Y
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Lithia Motors, Inc. (LAD - Free Report) reported adjusted earnings per share of $2.52 in second-quarter 2018, increasing from $2.28 in the prior-year quarter. However, the bottom line missed the Zacks Consensus Estimate of $2.98.
Reportedly, in the quarter, net income rose 14% year over year to $61 million. Revenues in the reported quarter totaled $3.1 billion, almost in line with the Zacks Consensus Estimate. The figure was $2.5 billion in the year-ago quarter.
Gross profit climbed 22.8% to $461 million in the quarter under review from $375.2 million a year ago.
Lithia Motors, Inc. Price, Consensus and EPS Surprise
Lithia Motors witnessed strong revenue growth across stores. The company anticipates further acquisition growth and continuous investment in innovation throughout the year.
Quarter in Details
Revenues from new-vehicle retail plunged 24.8% to $1.73 billion in the quarter. New-vehicle retail sales volume expanded 19.9% to 49,027 units. The average selling price of new-vehicle retail sales rose 4% to $35,221 from the year-ago figure of $33,860.
Used-vehicle retail revenues increased 26.9% to $804 million in the quarter, while revenues from used-vehicle wholesale rose 22.8% to $85,335 million. Used-vehicle retail sales volume improved 21.5% to 39,096 units. The average selling price of used-vehicle retail sales gained 4.4% to $20,567 from the year-ago $19,696.
Revenues from service body and parts went up 26.6% to $311.4 million. The company’s finance and insurance business recorded a 20.7% rise in revenues to $114.5 million. Revenues from fleet and others increased 39.6% to $54.4 million.
Acquisitions & Divestments
In second-quarter 2018, the company added Broadway Ford in Idaho Falls, ID and Buhler Ford in Eatontown, NJ, while divesting a Mitsubishi franchise in Fresno, CA.
Further, in July, the company added Chrysler Jeep Dodge location in Calallen, TA, separated a Subaru franchise into a stand-alone facility in Utica, NY and divested an Audi franchise in Monroeville, PA.
Financial Details
Lithia Motors had cash and cash equivalents of $30 million as of Jun 30, 2018, down from $57.3 million as of Dec 31, 2017. Long-term debt was $1.30 billion as of Jun 30, 2018, compared with $1 billion as of Dec 31, 2017.
Dividend & Share Repurchases
Lithia Motors announced a quarterly dividend of 29 cents per share, the amount will be payable on Aug 29, 2018, to shareholders of record as of Aug 15, 2018.
Year to date, the company has repurchased 677,437 shares. Further, Lithia Motors is left with $95 million under their existing $250-million share repurchase authorization.
Outlook
For 2018, Lithia Motors slashed earnings per share expectation from $10.6 per share to $9.50. Also, the company cut revenue expectations from $12-$12.5 billion to $11.75-$12.25 billion.
Fox Factory has an expected long-term growth rate of 15.8%. Over a year, shares of the company have surged 30.2%.
Oshkosh has an expected long-term growth rate of 18.3%. Over a year, shares of the company have gained 5.3%.
Volvo has an expected long-term growth rate of 15%. The stock has risen 2.9% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Lithia Motors' (LAD) Q2 Earnings Lag Estimates, Improve Y/Y
Lithia Motors, Inc. (LAD - Free Report) reported adjusted earnings per share of $2.52 in second-quarter 2018, increasing from $2.28 in the prior-year quarter. However, the bottom line missed the Zacks Consensus Estimate of $2.98.
Reportedly, in the quarter, net income rose 14% year over year to $61 million. Revenues in the reported quarter totaled $3.1 billion, almost in line with the Zacks Consensus Estimate. The figure was $2.5 billion in the year-ago quarter.
Gross profit climbed 22.8% to $461 million in the quarter under review from $375.2 million a year ago.
Lithia Motors, Inc. Price, Consensus and EPS Surprise
Lithia Motors, Inc. Price, Consensus and EPS Surprise | Lithia Motors, Inc. Quote
Lithia Motors witnessed strong revenue growth across stores. The company anticipates further acquisition growth and continuous investment in innovation throughout the year.
Quarter in Details
Revenues from new-vehicle retail plunged 24.8% to $1.73 billion in the quarter. New-vehicle retail sales volume expanded 19.9% to 49,027 units. The average selling price of new-vehicle retail sales rose 4% to $35,221 from the year-ago figure of $33,860.
Used-vehicle retail revenues increased 26.9% to $804 million in the quarter, while revenues from used-vehicle wholesale rose 22.8% to $85,335 million. Used-vehicle retail sales volume improved 21.5% to 39,096 units. The average selling price of used-vehicle retail sales gained 4.4% to $20,567 from the year-ago $19,696.
Revenues from service body and parts went up 26.6% to $311.4 million. The company’s finance and insurance business recorded a 20.7% rise in revenues to $114.5 million. Revenues from fleet and others increased 39.6% to $54.4 million.
Acquisitions & Divestments
In second-quarter 2018, the company added Broadway Ford in Idaho Falls, ID and Buhler Ford in Eatontown, NJ, while divesting a Mitsubishi franchise in Fresno, CA.
Further, in July, the company added Chrysler Jeep Dodge location in Calallen, TA, separated a Subaru franchise into a stand-alone facility in Utica, NY and divested an Audi franchise in Monroeville, PA.
Financial Details
Lithia Motors had cash and cash equivalents of $30 million as of Jun 30, 2018, down from $57.3 million as of Dec 31, 2017. Long-term debt was $1.30 billion as of Jun 30, 2018, compared with $1 billion as of Dec 31, 2017.
Dividend & Share Repurchases
Lithia Motors announced a quarterly dividend of 29 cents per share, the amount will be payable on Aug 29, 2018, to shareholders of record as of Aug 15, 2018.
Year to date, the company has repurchased 677,437 shares. Further, Lithia Motors is left with $95 million under their existing $250-million share repurchase authorization.
Outlook
For 2018, Lithia Motors slashed earnings per share expectation from $10.6 per share to $9.50. Also, the company cut revenue expectations from $12-$12.5 billion to $11.75-$12.25 billion.
Zacks Rank & Key Picks
Lithia Motors has a Zacks Rank #4 (Sell). A few better-ranked stocks in the auto space include Fox Factory Holding Corporation (FOXF - Free Report) , Oshkosh Corporation (OSK - Free Report) and AB Volvo (VLVLY - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory has an expected long-term growth rate of 15.8%. Over a year, shares of the company have surged 30.2%.
Oshkosh has an expected long-term growth rate of 18.3%. Over a year, shares of the company have gained 5.3%.
Volvo has an expected long-term growth rate of 15%. The stock has risen 2.9% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>