Lithia Motors (NYSE:LAD) Posts Earnings Results, Beats Estimates By $0.28 EPS

Lithia Motors (NYSE:LAD) released its quarterly earnings results on Wednesday. The company reported $7.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.06 by $0.28, Zacks reports. Lithia Motors had a return on equity of 12.76% and a net margin of 2.18%.The business had revenue of $9.27 billion during the quarter, compared to analysts’ expectations of $9.81 billion. During the same period in the previous year, the business posted $7.66 earnings per share. The firm’s revenue for the quarter was up 1.0% compared to the same quarter last year.

Here are the key takeaways from Lithia Motors’ conference call:

• Record quarter: Company reported record revenues of $9.3 billion and adjusted diluted EPS of $7.34, citing diversified operations and resilient execution despite weather and macro headwinds.
• Driveway Finance Corp. strength: DFC posted financing operations income of $21 million (up 71% YoY), record originations ($840M), a $5 billion portfolio and 18% penetration, positioning it toward the long?term 20%+ target.
• After?sales and used performance: After?sales revenue and gross profit grew (revenues +3.8%, gross profit +5.7%, margins 58.7%), and same?store used revenue rose 4.6% with sequential improvement in used GPU.
• Capital allocation: Management repurchased about 4% of outstanding shares (~$259–$300M this quarter) and remains biased toward buybacks while also pursuing disciplined acquisitions at attractive prices.
• Margin and new?vehicle pressures: New vehicle revenue fell 7.1% (unit declines and GPU compression), and adjusted SG&A to gross rose to 71.5% YoY (though flat sequentially), highlighting near?term profitability headwinds to address.

Lithia Motors Stock Performance

Shares of NYSE:LAD opened at $290.95 on Thursday. The stock has a market capitalization of $6.80 billion, a P/E ratio of 9.05, a P/E/G ratio of 0.66 and a beta of 1.22. Lithia Motors has a 1-year low of $239.78 and a 1-year high of $360.55. The business has a 50-day moving average price of $267.30 and a two-hundred day moving average price of $302.76. The company has a current ratio of 1.17, a quick ratio of 0.26 and a debt-to-equity ratio of 1.46.

Lithia Motors Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Friday, May 8th will be issued a dividend of $0.57 per share. The ex-dividend date of this dividend is Friday, May 8th. This represents a $2.28 annualized dividend and a yield of 0.8%. This is an increase from Lithia Motors’s previous quarterly dividend of $0.55. Lithia Motors’s dividend payout ratio (DPR) is presently 6.85%.

Analyst Upgrades and Downgrades

LAD has been the subject of several recent research reports. Weiss Ratings reissued a “hold (c+)” rating on shares of Lithia Motors in a report on Thursday, January 22nd. Bank of America dropped their price objective on Lithia Motors from $335.00 to $320.00 in a report on Monday, April 13th. JPMorgan Chase & Co. dropped their price objective on Lithia Motors from $335.00 to $320.00 and set a “neutral” rating for the company in a report on Friday, April 17th. Zacks Research raised Lithia Motors from a “strong sell” rating to a “hold” rating in a report on Thursday, April 23rd. Finally, Wall Street Zen cut Lithia Motors from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Six investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $361.00.

More Lithia Motors News

Here are the key news stories impacting Lithia Motors this week:

• Positive Sentiment: Q1 EPS beat — Lithia reported adjusted diluted EPS of $7.34 versus the Street at $7.06, driven by stronger aftersales margins that helped offset softer new?vehicle performance. Lithia Q1 Earnings Top Estimates on Higher Aftersales Margin
• Positive Sentiment: Operational highlights: record first?quarter revenue (~$9.3B), same?store used revenue and used retail GPUs rose, aftersales gross margin expanded ~100 bps on a same?store basis, Driveway Finance originations hit a record $840M and the company repurchased $259M (?4% of shares). These items support near?term cash flow and profitability. Lithia & Driveway (LAD) Reports First Quarter Results
• Positive Sentiment: Capital return: the board raised the quarterly dividend to $0.57 (a 3.6% increase from $0.55) with an ex?dividend date of May 8, and the buyback in Q1 shows management is returning cash to shareholders — supportive for the stock.
• Neutral Sentiment: Management materials and call: the company posted slides and an earnings presentation that provide detail on segment trends and margins for investors to review before revising models. Lithia Motors, Inc. 2026 Q1 – Results – Earnings Call Presentation
• Negative Sentiment: Revenue missed consensus — reported revenue was ~$9.27B vs. a roughly $9.81B consensus, and GAAP diluted EPS was lower year?over?year ($4.28 GAAP vs. $7.66 a year ago), signaling the quarter was mixed beneath the headline EPS. Lithia Motors earnings release and materials
• Negative Sentiment: Analyst caution on margins and demand — some analysts have trimmed margin expectations ahead of the print and flagged softer new?vehicle demand and higher cost pressure as risks for forward profitability. Lithia Motors earnings loom as analysts trim margin expectations

Hedge Funds Weigh In On Lithia Motors

Several institutional investors have recently modified their holdings of LAD. Quarry LP grew its position in shares of Lithia Motors by 101.9% during the 4th quarter. Quarry LP now owns 109 shares of the company’s stock worth $36,000 after buying an additional 55 shares during the period. Los Angeles Capital Management LLC acquired a new position in shares of Lithia Motors during the 4th quarter worth about $38,000. Parallel Advisors LLC grew its position in shares of Lithia Motors by 26.8% during the 4th quarter. Parallel Advisors LLC now owns 156 shares of the company’s stock worth $52,000 after buying an additional 33 shares during the period. State of Wyoming acquired a new position in shares of Lithia Motors during the 2nd quarter worth about $67,000. Finally, Kestra Advisory Services LLC acquired a new position in shares of Lithia Motors during the 4th quarter worth about $68,000.

Lithia Motors Company Profile

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.