Lithia Motors Q3: Earnings Beat Estimates, New Store Acquisitions Expand Market Reach Across Luxury Segments In Florida

Lithia Motors, Inc. LAD reported third-quarter adjusted earnings per share of $8.21, beating the analyst consensus estimate of $7.60.

Unrealized investment gains and foreign currency exchange gains increased diluted earnings per share by 11 cents.

Quarterly sales of $9.221 billion (+11%) missed the street view of $9.482 billion.

Revenue Segments: New vehicle retail (+14%), Used vehicle retail (+8.5%), Used vehicle wholesale (+23.7%), Finance and insurance (+3.1%), Aftersales (+20.9%), Fleet and other (-31.4%).

Adjusted net income was $222 million, reflecting a 14% decrease from $258 million in the same period of 2023.

Aftersales gross profit increased by 6.3% on a same-store basis. The financing operations remained profitable, reporting quarterly income of $1 million.

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In the third quarter, the company expanded its network in the Southeast by acquiring three stores from Duval Motor Company in Jacksonville and Gainesville, Florida.

These acquisitions will enhance Lithia Motors’ presence in the import and luxury segments in Florida, broadening the geographic scope of the company’s retail network.

So far this year, Lithia Motors has achieved over $5.9 billion in annualized revenues through its acquisitions.

Driveway Finance Corporation (DFC) originated $518 million in loans, bringing its total portfolio to $3.8 billion.

The company ended the third quarter with approximately $1.1 billion in cash and cash equivalents.

Dividend: The company approved a dividend of 53 cents per share related to third quarter 2024 financial results. The dividend is expected to be paid on November 15 to shareholders of record on November 8.

During 2024, the firm repurchased approximately 986,000 shares at a weighted average price of $260.

Under the current share repurchase authorization, approximately $560.9 million remains available.

Price Action: LAD shares are trading higher by 2.788% to $313.01 premarket at last check Wednesday.

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