NYSE$LAD

Lithia Motors Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Lithia Motors reported its highest second quarter net income in the company's history, driven by strong sequential improvements and responsiveness to the current environment.

Lithia Motors reported a revenue of $2.8 billion for Q2 2020. Net income increased by 26% to $78 million, with diluted earnings per share rising by 29% to $3.38. Adjusted diluted earnings per share reached $3.72, a 26% increase. The company's strong performance was attributed to improvements throughout the quarter and the activation of e-commerce digital home solutions.

  • Highest quarterly adjusted earnings per share in company history.
  • Same store used vehicle retail sales increased 0.5%.
  • Same store F&I per unit increased 9.4% to $1,590.
  • Same store total gross profit per unit increased 11.4% to $4,030.

Headline financials

Total Revenue

$2.76B

Previous: $3.22B-14.4%
EPS (adj)

$3.72

Previous: $2.95+26.1%
New Vehicle Units Sold

34.9K

Previous: 45.9K-24.0%
Used Vehicle Retail Units

43.5K

Previous: 42.9K+1.5%
New Vehicle Avg Price

$39.2K

Previous: $37.2K+5.4%
Used Vehicle Avg Price

$21.2K

Previous: $20.7K+2.3%
New Vehicle Avg Gross Profit

$2.64K

Previous: $2.08K+27.2%
Used Vehicle Avg Gross Profit

$2.26K

Previous: $2.17K+3.9%
F&I Avg Gross Profit

$1.59K

Previous: $1.45K+9.6%
Total Vehicle Avg Gross Profit

$4.05K

Previous: $3.6K+12.6%
Capital Expenditures

-$78.3M

Previous: -$57.8M-35.5%
Free Cash Flow

-$600K

Previous: $4.1M-114.6%
Net Income

$77.7M

Previous: $61.9M+25.5%
Operating Income

$130M

Previous: $117M+10.9%
Gross Profit

$464M

Previous: $494M-5.9%
Cash & Equivalents

$120M

Previous: $44.7M+169.1%
Total Assets

$5.54B

Previous: $5.77B-4.1%
Stock-Based Comp

$4.9M

Previous: $3.9M+25.6%

Revenue & EPS history

Lithia Motors · Revenue · Quarterly

$2.76B

Q2 2020-14.4%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Lithia Motors · $2.69B total across 4 segments · Q2 2020

  • New Vehicle Retail
    $1.37B-19.9%
  • Used Vehicle Retail
    $922M+3.8%
  • Aftersales
    $276M-17.9%
  • Finance & Insurance
    $125M-3.2%

Forward guidance

The acquisition market is robust and Lithia Motors is accelerating the build out of its coast-to-coast network, enabling it to serve customers wherever, whenever, and however they desire. The company's balance sheet is in the strongest position in its history and it is well positioned to accelerate its plan to reach 5% national market share.

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 Q2 2020

Historical avgQ2 2020

+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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