Lithia Motors, Inc. LAD exceeded earnings expectations with a second-quarter adjusted earnings per share of $7.87 beating the analyst consensus of $7.03.
Still, revenues fell short of projections, and the company suffered a significant dip in net income.
Quarterly revenues of $9.23 billion (+14%) missed the street view of $9.33 billion.
Adjusted second quarter 2024 net income was $217 million, a 29% decrease compared to adjusted net income of $306 million for the same period of 2023.
“We have opportunistically rebalanced our capital allocation from acquisitions toward returns to our shareholders, with the long-term target of delivering $2 in EPS per billion in revenues,” said Bryan DeBoer, President and CEO.
During the second quarter, Lithia Motors expanded its network in the Southeast region. It acquired two stores in Tennessee and added Woodbridge Hyundai in the greater Toronto area.
Year-to-date, the firm acquired over $5.6 billion in annualized revenues.
Lithia Motors exited Q2 with $1.3 billion in cash, marketable securities, and availability on revolving lines of credit.
The company approved a dividend of 53 cents per share related to the second quarter financial results. The dividend is expected to be paid on Aug. 23.
In the quarter under review, the company repurchased approximately 793,000 shares at a weighted average price of $256. Under the current share repurchase authorization, approximately $613.8 million remains available.
In a separate release, Adam Chamberlain was promoted to Executive Vice President, Chief Operating Officer (COO).
Chris Holzshu will continue as an Executive Vice President, with both supporting the company.
Price Action: LAD shares closed higher by 3.61% to $276.33 on Wednesday.
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