NYSE$LAD

Lithia Motors Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Lithia Motors reported its highest second quarter earnings in company history, driven by a 118% increase in revenue and a 218% increase in EPS.

Lithia & Driveway (LAD) reported record second-quarter results, with revenue increasing by 118% to $6.0 billion and earnings per share rising by 218% to $10.75. The company's performance was boosted by a robust retail environment and strong growth across new and used vehicle sales, as well as F&I and service, body, and parts revenues. Strategic acquisitions are expected to contribute $3.7 billion in annualized revenue.

  • Total company revenues increased by 117.8%.
  • New vehicle retail sales increased by 130.0%.
  • Used vehicle retail sales increased by 95.7%.
  • F&I per unit increased 16.4% to $1,854.

Headline financials

Total Revenue

$6.01B

Previous: $2.76B+117.8%
EPS (adj)

$11.12

Previous: $3.72+198.9%
F&I Avg Gross Profit

$1.85K

Previous: $1.59K+16.4%
Total Vehicle Avg Gross Profit

$5.72K

Previous: $4.05K+41.3%
Capital Expenditures

-$113M

Previous: -$78.3M-44.3%
Free Cash Flow

$192M

Previous: -$600K+32083.3%
Net Income

$305M

Previous: $77.7M+292.4%
Operating Income

$446M

Previous: $130M+244.1%
Gross Profit

$1.11B

Previous: $464M+139.1%
Cash & Equivalents

$781M

Previous: $120M+549.1%
Total Assets

$10.1B

Previous: $5.54B+82.2%
Stock-Based Comp

$9.2M

Previous: $4.9M+87.8%

Revenue & EPS history

Lithia Motors · Revenue · Quarterly

$6.01B

Q2 2021+117.8%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Lithia Motors · $5.74B total across 4 segments · Q2 2021

  • New Vehicle Retail
    $3.15B+130.0%
  • Used Vehicle Retail
    $1.8B+95.7%
  • Aftersales
    $521M+89.1%
  • Finance & Insurance
    $270M+115.9%

Forward guidance

Lithia Motors is focused on profitably consolidating the largest retail sector in the country and continues to lead the industry's consolidation. Combined with Driveway's e-commerce in-home experiences further accelerates the massive regenerating capital engine to create a unique and compelling high-growth strategy that provides transportation solutions wherever, whenever, and however consumers desire.

Tailwinds

  • Future market conditions, including anticipated car sales levels
  • Anticipated impacts of the continued COVID-19 pandemic on the U.S. and local economies in which we operate, our business operations and consumer demand
  • Continuation of our sales and services, including in-store appointments and home deliveries
  • Expected growth from our e-commerce home solutions and digital strategies
  • Expected operating results, such as improved store performance

Headwinds

  • Future economic and financial conditions (both nationally and locally), including as a result of the COVID-19 pandemic
  • Changes in customer demand, our relationship with, and the financial and operational stability of, vehicle manufacturers and other suppliers
  • Risks associated with our indebtedness (including available borrowing capacity, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms)
  • The adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level
  • Disruptions to our technology network including computer systems and software, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of our operating systems, structures, facilities or equipment

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 2021

Historical avgQ2 2021

+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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