Lithia Motors Earnings: Here’s Why Investors are Buying Shares Now

Lithia Motors Inc. (NYSE:LAD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.89%.

Lithia Motors Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 38.16% to $1.05 in the quarter versus EPS of $0.76 in the year-earlier quarter.

Revenue: Rose 19.05% to $1.01 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lithia Motors Inc. reported adjusted EPS income of $1.05 per share. By that measure, the company beat the mean analyst estimate of $0.9. It beat the average revenue estimate of $975.81 million.

Quoting Management: “We exceeded $1.0 billion in quarterly revenue for the first time in our history,” said Bryan DeBoer, President and CEO. “The combination of acquisitions and same store sales growth increased revenue by 23% over the prior year. Our adjusted net income from continuing operations increased 41% from the prior year, significantly above the growth in revenue, as we increase our operating leverage. Based on our results through the first six months of the year, we are well on our way towards the first milestone for growth we established late in 2012, where total revenue increases by 25% from full year 2012 results.”

Key Stats (on next page)…

Revenue increased 18.79% from $849 million in the previous quarter. EPS increased 25% from $0.84 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.01 to a profit $1.04. For the current year, the average estimate has moved up from a profit of $3.54 to a profit of $3.64 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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