The 10-second takeaway
For the quarter ended June 30 (Q2), Lithia Motors beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Gross margins dropped, operating margins increased, net margins were steady.
Lithia Motors logged revenue of $1.01 billion. The eight analysts polled by S&P Capital IQ hoped for a top line of $983.4 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $822.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.05. The nine earnings estimates compiled by S&P Capital IQ forecast $0.93 per share. Non-GAAP EPS of $1.05 for Q2 were 38% higher than the prior-year quarter's $0.76 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.) GAAP EPS of $0.98 for Q2 were 26% higher than the prior-year quarter's $0.78 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 15.8%, 50 basis points worse than the prior-year quarter. Operating margin was 4.9%, 40 basis points better than the prior-year quarter. Net margin was 2.5%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.04 billion. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $3.95 billion. The average EPS estimate is $3.89.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lithia Motors is outperform, with an average price target of $56.33.
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