Automotive retailer Lithia Motors (NYSE:LAD) will be reporting results tomorrow before market hours. Here’s what to look for.
Lithia beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $9.22 billion, up 20.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a narrow beat of analysts’ gross margin estimates.
Is Lithia a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Lithia’s revenue to grow 9.9% year on year to $9.41 billion, slowing from the 22.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.82 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 four times over the last two years.
Looking at Lithia’s peers in the automotive and marine retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CarMax delivered year-on-year revenue growth of 6.7%, meeting analysts’ expectations, and Genuine Parts reported revenues up 1.4%, topping estimates by 0.5%. CarMax traded down 14.7% following the results.
Read our full analysis of CarMax’s results here and Genuine Parts’s results here.
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