Lithia Motors Navigates Mixed Q4 Results: Sales Up But Fall Short Of Expectations, Steady EPS And New Dividend
Portfolio Pulse from Anusuya Lahiri
Lithia Motors Inc (NYSE:LAD) reported Q4 FY23 sales growth of 10.5% Y/Y to $7.67 billion, missing analyst expectations of $7.95 billion. Adjusted EPS was $8.24, aligning with consensus. New vehicle retail revenues rose by 21.4%, and used vehicle retail revenues by 1.8%. Driveway's monthly unique visitors averaged nearly 2.8 million, with over $428 million in loans originated. Gross profit increased 4.3% Y/Y to $1.26 billion, though gross margin contracted by 100 basis points to 16.4%. Adjusted operating margin fell by 60 bps, with operating income dropping to $387.6 million from $393.4 million Y/Y. Cash and equivalents stood at $941.4 million, with inventories at $4.75 billion. A dividend of $0.50 per share was announced, payable on March 22, 2024, to shareholders on record as of March 9, 2024. LAD shares dropped 1.00% in premarket trading.
February 14, 2024 | 1:22 pm
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Lithia Motors Inc reported mixed Q4 FY23 results with a 10.5% sales growth but below analyst expectations, steady EPS, and a new dividend announcement. Shares traded lower by 1.00% premarket.
The mixed Q4 FY23 results, with sales growth but missing expectations and a steady EPS, indicate potential short-term negative sentiment among investors. The announcement of a new dividend might offset some negative sentiment, but the premarket share price movement suggests a short-term negative impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100