Automotive retailer Lithia Motors (NYSE:LAD) will be reporting earnings this Wednesday before the bell. Here’s what to expect.
Lithia beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $9.68 billion, up 4.9% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
Is Lithia a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Lithia’s revenue to be flat year on year at $9.26 billion, slowing from the 20.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $8.10 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lithia has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Lithia’s peers in the automotive and marine retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AutoNation’s revenues decreased 3.9% year on year, missing analysts’ expectations by 3.6%, and OneWater reported revenues up 1.3%, in line with consensus estimates. AutoNation traded up 3.1% following the results while OneWater’s stock price was unchanged.
Read our full analysis of AutoNation’s results here and OneWater’s results here.
Investors in the automotive and marine retail segment have had steady hands going into earnings, with share prices flat over the last month. Lithia’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $396.71 (compared to the current share price of $331.05).
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