Automotive retailer Lithia's Q2 adjusted EPS beats estimates

Lithia Motors

29/07/2025 10:39

Overview

Lithia Q2 revenue rises 4% yr/yr but missed analyst expectations

Adjusted EPS for Q2 beats analyst estimates, driven by unrealized gains

Co repurchased 1.5% of outstanding shares during the quarter

Outlook

Company well positioned to accelerate growth in second half of 2025

Result Drivers

AFTERSALES GROWTH - Aftersales gross profit increased 11.5% compared to Q2 2024, contributing to overall revenue growth

FINANCING PROFITABILITY - Financing operations generated $20 mln in profit, a 179% increase year-over-year, boosting earnings

OMNICHANNEL ECOSYSTEM - Scalability of omnichannel ecosystem, including Driveway and recent acquisitions, drove market-share gains and earnings growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$9.58 bln
$9.69 bln (12 Analysts)
Q2 Adjusted EPS
Beat
$10.24
$9.24 (12 Analysts)
Q2 EPS
$9.87
Q2 Adjusted Net Income
$268 mln
Q2 Net Income
$258.20 mln
Q2 Dividend
$0.55


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "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 $400.00, about 23.2% above its July 28 closing price of $307.07

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPn2H1Gjja

(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.)