LAD Earnings Prediction
The chart below shows how LAD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LAD sees a +1.85% change in stock price 10 days leading up to the earnings, and a +1.01% change 10 days following the report. On the earnings day itself, the stock moves by +0.41%. This data can give you a slight idea of what to expect for the next quarter's release.
LAD Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
9.17B
19.54%
-0.52%
Gross Margin
14.37%
-8.82%
-3.10%
Operating Margin
4.61%
-8.35%
-0.22%
Net Margin
2.37%
-15.96%
-2.07%
EPS
8.07
4.26%
3.46%
No Data Available
LAD Earnings Analysis
Lithia Motors Inc Corporation (LAD.N) Earnings Conference Call
Positive
Earnings Per Share Growth: Adjusted diluted earnings per share reached $7.79, reflecting the effectiveness of the company's strategy and operational efficiencies.
Record Revenue Achievement: Lithia Motors achieved record revenues of $9.2 billion in Q4, marking a 20% increase year-over-year, driven by market share gains and improved customer engagement.
Cost Savings Impact on Profit: The company fully realized its $200 million annual cost savings target, contributing to a year-over-year increase in operating profit for the first time in nine quarters.
Profitability Turnaround in Q4: Financing operations reported a profitability of $9 million in Q4, a significant turnaround from a loss of $2 million in the same quarter last year, indicating strong earnings growth potential.
Share Repurchase Commitment: During the quarter, Lithia Motors repurchased $93 million worth of shares, representing 0.9% of outstanding shares, demonstrating a commitment to returning value to shareholders.
Negative
Gross Profit Decline: Total gross profits declined 3.7% year over year, primarily due to the normalization of GPUs, indicating a decrease in profitability despite a 3.1% increase in total revenues.
Used Vehicle Sales Decline: Used vehicle units decreased by 4.3% year over year, reflecting a decline in sales volume in a key segment of the business.
High SG&A Cost Structure: Adjusted SG&A as a percentage of gross profit was 66.3% during the quarter, indicating a high cost structure that remains a concern despite efforts to manage costs.
New Vehicle GPU Decline: The company reported a sequential decline in new vehicle GPUs, which decreased from $3,188 to $3,082, suggesting challenges in maintaining profitability in new vehicle sales.
Store Count Decline: The store count decreased from 467 to 459, primarily due to divestitures and closures in the UK, indicating potential challenges in market conditions and operational efficiency.
LAD FAQs
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LAD Earning Call Sentiment
Earnings call transcript: Lithia Motors Q4 2024 beats forecasts, stock rises
LAD.N
-4.36%Positive
The earnings call presents a positive outlook with record revenue growth, strategic cost savings, and strong financing operations profitability. Despite conservative new vehicle GPU outlook and unclear management responses on some issues, the company shows resilience with strategic partnerships, a focus on digital growth, and a balanced capital allocation strategy. The Q&A section highlights potential for future growth in used vehicle sales and after-sales, while maintaining a strong balance sheet. The overall sentiment is positive, suggesting a potential stock price increase in the short term.
