Lithia & Driveway Q4 revenue edges past estimates, EPS misses

Overview

• Global automotive retailer's Q4 revenue slightly beat analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company repurchased $947 mln of shares, 11.4% of shares outstanding in 2025

Outlook

• Lithia & Driveway plans to capitalize on market opportunities with diversified platform

Result Drivers

• USED VEHICLE SALES - Used vehicle revenue increased 6.1% and retail units rose 4.7% on a same store basis

• AFTERSALES GROWTH - Aftersales revenue grew 10.9% and gross profit increased by 9.8% on a same store basis

• FINANCING OPERATIONS - Financing operations delivered record quarterly income of $23 mln, a $19 mln increase from the prior year

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "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 22.5% above its February 10 closing price of $326.55

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

Press Release: ID:nPn2F045La

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