Lithia Motors, Inc. (NYSE:LAD) reported fourth-quarter adjusted earnings per share of $7.79 on Wednesday, beating the street view of $7.24. Quarterly sales of $9.22 billion (up 20% year over year) outpaced the analyst consensus estimate of $9.10 billion.

“2024 marks another milestone year for Lithia & Driveway, with record-breaking fourth-quarter revenues, the first profitable year for Driveway Finance, and the continued maturity of foundational elements to our strategy,” said Bryan DeBoer, President and CEO.

Lithia Motors said that the fourth quarter adjusted results exclude a 33 cents per diluted share impact resulting from non-core items, including a net gain on the disposal of stores and tax attributes.

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The new retail units in the quarter under review increased 7.4 % on a same-store basis, while aftersales gross profit increased 4.5% on a same-store basis.

Last month, Lithia Motors expanded its network in the Mid-Atlantic region by acquiring the Stohlman Subaru store in Sterling, Virginia, which will add an expected annual revenue of $80 million.

The company ended the quarter with approximately $402.2 million in cash and equivalents, with net inventories worth $5.911 billion. In addition, unfinanced real estate could provide additional liquidity of approximately $0.3 billion.

Lithia Motors’ long-term debt, less current maturities, totaled $6.119 billion.

Dividend: The company approved a dividend of $0.53 per share related to fourth-quarter results. The dividend is expected to be paid on March 21 to shareholders of record on March 7.

Price Action: LAD shares are trading higher by 6.59% to $393.00 premarket at last check Wednesday.

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