The 10-second takeaway
For the quarter ended March 31 (Q1), Lithia Motors beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins expanded, net margins increased.
Lithia Motors booked revenue of $903.1 million. The eight analysts polled by S&P Capital IQ wanted to see revenue of $854.8 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $758.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.84. The nine earnings estimates compiled by S&P Capital IQ forecast $0.71 per share. Non-GAAP EPS of $0.84 for Q1 were 40% higher than the prior-year quarter's $0.60 per share. GAAP EPS of $0.85 for Q1 were 35% higher than the prior-year quarter's $0.63 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.2%, 60 basis points worse than the prior-year quarter. Operating margin was 4.5%, 30 basis points better than the prior-year quarter. Net margin was 2.4%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $952.7 million. On the bottom line, the average EPS estimate is $0.86.
Next year's average estimate for revenue is $3.77 billion. The average EPS estimate is $3.42.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lithia Motors is outperform, with an average price target of $47.50.
The rich are different than you and me: They might not notice the moneymaking stories right under our noses. In our new report, "Middle-Class Millionaire-Makers: 3 Stocks Wall Street's Too Rich to Notice," we give you three Peter Lynch-inspired buy-what-you-know stocks for the 99%. Click here for instant access to this free report.
- Add Lithia Motors to My Watchlist.