Lithia Motors Earnings: Here’s Why Shares are Down 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 down 0.94%.

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Lithia Motors Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 40% to $0.84 in the quarter versus EPS of $0.60 in the year-earlier quarter.

Revenue: Rose 19% to $903.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lithia Motors Inc. reported adjusted EPS income of $0.84 per share. By that measure, the company beat the mean analyst estimate of $0.71. It beat the average revenue estimate of $850.69 million.

Quoting Management: “We grew quarterly EPS 42% over the adjusted prior year,” said Bryan DeBoer, President and CEO. “Total same store sales increased 19% in 2013, on top of an increase of 21% in 2012. We are pleased with our performance in the service, body and parts business, which increased 7% on a same store basis, despite two fewer selling days in 2013 compared to 2012. Warranty sales increased over 9% for the second consecutive quarter, suggesting that the number of vehicles eligible for warranty repair is growing.”

Key Stats (on next page)…

Revenue increased 6.37% from $849 million in the previous quarter. EPS increased 13.51% from $0.74 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.87 to a profit $0.86. For the current year, the average estimate has moved up from a profit of $3.25 to a profit of $3.42 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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