NYSE$LAD

Lithia Motors Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Lithia & Driveway reported increased revenue and decreased diluted EPS for Q1 2023.

Lithia & Driveway reported a 4% increase in revenue to $7.0 billion for the first quarter of 2023, marking the highest first quarter revenue in the company's history. However, diluted earnings per share decreased by 28% to $8.30, and net income decreased by 33% to $230 million compared to the same period in 2022. The company acquired 37 locations and increased the dividend to $0.50 per share.

  • Revenues increased by 4% compared to the first quarter of 2022.
  • New and used unit growth was 4% and 6%, respectively.
  • Total vehicle gross profit per unit decreased to $5,585, down $1,240.
  • Service, body, and parts revenues increased by 17%.

Headline financials

Total Revenue

$6.97B

Previous: $6.71B+4.0%
EPS (adj)

$8.44

Previous: $11.96-29.4%
New Vehicle Units Sold

67.8K

Previous: 64.9K+4.4%
Used Vehicle Retail Units

78.1K

Previous: 73.7K+6.0%
New Vehicle Avg Price

$48.4K

Previous: $47.1K+2.6%
Used Vehicle Avg Price

$28.5K

Previous: $30.3K-6.0%
New Vehicle Avg Gross Profit

$4.92K

Previous: $6.18K-20.3%
Used Vehicle Avg Gross Profit

$2.12K

Previous: $3.04K-30.2%
F&I Avg Gross Profit

$2.18K

Previous: $2.26K-3.5%
Total Vehicle Avg Gross Profit

$5.59K

Previous: $6.83K-18.2%
Capital Expenditures

-$38.9M

Previous: -$60.7M+35.9%
Free Cash Flow

$190M

Previous: $282M-32.6%
Net Income

$229M

Previous: $342M-33.2%
Operating Income

$379M

Previous: $513M-26.1%
Gross Profit

$1.21B

Previous: $1.28B-5.2%
Cash & Equivalents

$299M

Previous: $132M+127.5%
Total Assets

$16.4B

Previous: $12.1B+35.9%
Stock-Based Comp

$9.1M

Previous: $10.5M-13.3%

Revenue & EPS history

Lithia Motors · Revenue · Quarterly

$6.97B

Q1 2023+4%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Lithia Motors · $6.56B total across 4 segments · Q1 2023

  • New Vehicle Retail
    $3.28B+7.1%
  • Used Vehicle Retail
    $2.23B-0.3%
  • Aftersales
    $736M+17.3%
  • Finance & Insurance
    $318M+1.6%

Forward guidance

The company continues to find accretive acquisitions that expand their network and grow DFC, which will increase profitability in the long-term, and progress toward the goals in their 2025 Plan. Their strong balance sheet and significant capital engine position them well to further consolidate the industry.

Tailwinds

  • Positioned well to meet consumer needs in-store or online.
  • Continue to find accretive acquisitions that expand our network.
  • Grow DFC, which will increase our profitability in the long-term.
  • Progress toward the goals in our 2025 Plan.
  • Strong balance sheet and significant capital engine position us well to further consolidate the industry.

Headwinds

  • Future market conditions, including anticipated car and other sales levels and the supply of inventory.
  • The market for dealerships, including the availability of stores to us for an acceptable price.
  • Changes in customer demand, our relationship with, and the financial and operational stability of, OEMs and other suppliers.
  • Changes in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehicles.
  • Risks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.3%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+1.4%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+26.2%

Q2 2020

Best reaction

-11.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%+1.6%+4.8%
Q4 2025-1.9%-7.7%-22.0%
Q3 2025-1.2%+3.2%-3.0%
Q1 2025-5.8%-1.6%+5.4%
Q4 2024+4.6%+3.0%-19.8%
Q3 2024+10.1%+11.4%+28.3%
Q2 2024+5.0%+1.3%+9.0%
Q1 2024-2.6%-1.2%-3.1%
Q4 2023+2.0%-2.2%-5.5%
Q3 2023-2.5%-2.8%+8.3%
Q2 2023+5.4%+6.2%+3.0%
Q1 2023-2.3%-0.5%-0.1%
Q4 2022-6.5%-4.2%-25.5%
Q3 2022-11.7%-6.7%+9.9%
Q2 2022-8.2%-13.6%-8.9%
Q1 2022-4.7%-5.3%-7.9%
Q4 2021+4.2%+3.4%+7.2%
Q3 2021-0.4%-0.8%-14.0%
Q2 2021+5.6%+4.8%-7.6%
Q1 2021+2.0%+3.3%-4.4%
Q4 2020+6.2%+12.1%+11.3%
Q3 2020-3.8%-7.2%+8.3%
Q2 2020+26.2%+29.6%+49.6%
Q1 2020+11.1%+21.5%+35.2%
Q4 2019-6.6%-6.5%-31.9%
Q3 2019+18.4%+20.6%+23.2%
Q2 2019+15.4%+14.4%+7.4%
Q1 2019+12.7%+16.5%+19.0%
Q4 2018-2.9%+1.9%+1.8%
Q3 2018+18.9%+17.7%+8.0%
Q2 2018-9.6%-7.2%-8.8%
Q1 2018-2.6%-3.7%-1.9%
Q4 2017-5.8%-5.9%-10.0%
Q3 2017-5.9%-3.7%-1.6%
Q2 2017+3.2%-1.1%+3.0%
Q1 2017+11.1%+11.1%+7.7%
Q4 2016-3.3%-1.5%-9.3%
Q3 2016-7.0%-9.2%-8.7%
Q2 2016+3.5%-1.0%-3.3%
Q1 2016-11.2%
Q4 2015+8.1%
Q3 2015+6.5%
Q2 2015+4.0%
Q1 2015+2.4%
Q4 2014+3.2%
Q3 2014+3.9%
Q2 2014+5.3%
Q1 2014+1.9%
Q4 2013+4.0%
Q3 2013-6.3%
Q2 2013+0.0%
Q1 2013+6.6%
Q4 2012-7.1%
Q3 2012-7.3%
Q2 2012+6.9%
Q1 2011-1.1%
Q1 2012+8.5%
Q2 2011-1.5%
Q4 2010-1.5%
Q4 2011-1.5%
Q4 2009-1.5%
Q3 2010-7.4%
Q3 2011-7.4%
Q2 2010-0.2%
Q1 2010+5.1%

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