Auto retailer Lithia & Driveway's Q3 results beat on demand for used vehicles

Lithia Motors

Yesterday 10:41

Overview
US automotive retailer's Q3 revenue rose 3% yr/yr, beating analyst expectations
Adjusted diluted EPS for Q3 increased 9%, beating analyst expectations
Company repurchased $85 mln in shares and raised quarterly dividend by 7%

Outlook
Company expects $250 mln in annualized revenue from recent Memphis store acquisitions
Company has acquired $1.17 bln in expected annualized revenues year to date
Company says strategy and priorities remain unchanged, focusing on network growth and capital discipline

Result Drivers
USED VEHICLE PROFITABILITY - Co said used vehicle gross profit per unit rose 11% yr/yr
AFTERSALES MARGINS - Aftersales gross profit and margin improved on a same-store basis
FINANCING OPERATIONS - Co said financing operations income grew 69% yr/yr, supported by record originations

Company press release: ID:nGNX8gfDpr

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$9.95 bln
$9.73 bln (11 Analysts)
Q3 Adjusted EPS
Beat
$10.34
$9.77 (12 Analysts)
Q3 EPS
 
$13.22
 
Q3 Adjusted Net Income
Beat
$229.30 mln
$215.43 mln (8 Analysts)
Q3 Dividend
 
$0.75
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"
Wall Street's median 12-month price target for Lithia Motors Inc is $409.00, about 36.5% above its October 20 closing price of $299.53
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Oct 20 - GM shares sink as automaker signals rising cost pressures
Oct 20 - General Motors' Q3 revenue, adj EPS beat on North America performance

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)