Automotive retailer Lithia's Q2 adjusted EPS beats estimates
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
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