Lithia & Driveway Q2 revenue beats estimates

Lithia Motors

29/07/2026 10:41

Overview
US automotive retailer's Q2 revenue rose 2%, beating analyst expectations
Adjusted EPS for Q2 rose 9% and beat analyst expectations
Company repurchased $242 mln of shares and raised dividend by 23%

Outlook
Company did not provide specific guidance for the current quarter or full year

Result Drivers
AFTERSALES GROWTH - Aftersales gross profit increased 3.1% and gross margin rose 120 basis points on a same-store basis
USED VEHICLE PROFITABILITY - Used retail gross profit per unit increased $339, or 20%, sequentially
FINANCING OPERATIONS - Financing operations achieved record income of $37 mln and record originations of $884 mln, with a 17.5% penetration rate

Company press release: ID:nGNX4nhkh5

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$9.79 bln
$9.63 bln (11 Analysts)
Q2 Adjusted EPS
Beat
$10.03
$8.78 (12 Analysts)
Q2 EPS
 
$11.54
 
Q2 Adjusted Net Income
Beat
$227.60 mln
$201.20 mln (8 Analysts)
Q2 Dividend
 
$0.70
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "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 $390.00, about 8.8% above its July 28 closing price of $358.31
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
July 28 - Asbury Automotive Q2 adjusted EPS beats estimates on used vehicle profitability 
July 29 - Germany's AUTO1 Q2 revenue rises, EBITDA jumps 
July 29 - Ford joins GM in raising profit outlook as wealthy buyers keep truck demand humming

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.)