Why Is Lithia Motors Stock Sliding Today?
Portfolio Pulse from Shivani Kumaresan
Lithia Motors, Inc. (NYSE:LAD) reported a 23% year-on-year sales growth for Q1 FY24, with sales of $8.56 billion surpassing analyst estimates. New and used vehicle revenues saw significant increases, while GreenCars and Driveway Finance Corporation also reported growth. However, gross margin contracted, operating income fell by 9.9%, and adjusted EPS missed analyst expectations. The company announced a dividend and has a significant share repurchase authorization remaining. Shares fell 3.55% in premarket trading.
April 24, 2024 | 11:40 am
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Lithia Motors reported strong sales growth but missed EPS estimates for Q1 FY24, announced a dividend, and saw a premarket stock price drop of 3.55%.
The mixed financial results, with strong sales growth but a miss on EPS expectations, alongside the announcement of a dividend, are likely to have a short-term negative impact on LAD's stock price, as evidenced by the premarket drop. Investors may be reacting to the earnings miss and the increased net debt, despite the positive sales figures and dividend announcement.
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