As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the vehicle retailer industry, including Lithia (NYSE:LAD) and its peers.
Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.
The 6 vehicle retailer stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.1%.
In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.
Lithia (NYSE:LAD)
With a strong presence in the Western US, Lithia Motors (NYSE:LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.
Lithia reported revenues of $9.68 billion, up 4.9% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
"Our third quarter results demonstrate our focus on operational excellence with strong growth in same store sales and earnings per share and solid profitability gains driven by the continued execution of our strategy" said Bryan DeBoer, President and CEO.
Interestingly, the stock is up 7.9% since reporting and currently trades at $336.41.
Is now the time to buy Lithia? Access our full analysis of the earnings results here, it’s free.
Best Q3: Camping World (NYSE:CWH)
Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE:CWH) still sells RVs along with boats and general merchandise for outdoor activities.
Camping World reported revenues of $1.81 billion, up 4.7% year on year, outperforming analysts’ expectations by 3.9%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 30.1% since reporting. It currently trades at $11.76.
Is now the time to buy Camping World? Access our full analysis of the earnings results here, it’s free.
Slowest Q3: America's Car-Mart (NASDAQ:CRMT)
With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ:CRMT) sells used cars to budget-conscious consumers.
America's Car-Mart reported revenues of $350.2 million, up 1.2% year on year, exceeding analysts’ expectations by 5.8%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 20.9% since the results and currently trades at $28.20.
Read our full analysis of America's Car-Mart’s results here.
Penske Automotive Group (NYSE:PAG)
With a diverse global network spanning the US, UK, Canada, Germany, Italy, Japan, and Australia, Penske Automotive Group (NYSE:PAG) operates automotive and commercial truck dealerships across the globe, selling new and used vehicles while providing service, parts, and financing options.
Penske Automotive Group reported revenues of $7.70 billion, up 1.4% year on year. This result met analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ same-store sales estimates but a miss of analysts’ EBITDA estimates.
Penske Automotive Group had the weakest performance against analyst estimates among its peers. The stock is up 1.4% since reporting and currently trades at $165.37.
Read our full, actionable report on Penske Automotive Group here, it’s free.
CarMax (NYSE:KMX)
Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE:KMX) is the largest automotive retailer in the United States.
CarMax reported revenues of $5.79 billion, down 6.9% year on year. This number surpassed analysts’ expectations by 3.3%. It was a stunning quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
CarMax had the slowest revenue growth among its peers. The stock is up 9.9% since reporting and currently trades at $45.12.
Read our full, actionable report on CarMax here, it’s free.
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