NYSE$LAD

Lithia Motors Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Lithia Motors reported record second quarter revenue and the first profitable quarter for Financing Operations.

Lithia & Driveway (LAD) reported a record second quarter revenue of $9.2 billion, a 14% increase year-over-year. The Financing Operations achieved its first profitable quarter. Net income attributable to LAD per diluted share was $7.87, a 27% decrease from the previous year.

  • Total revenues increased 14% compared to second quarter 2023.
  • Diluted net income per share improved from $6.11 to $7.87, a 29% increase, from first quarter 2024.
  • Financing operations first profitable quarter with income of $7 million.
  • Driveway Finance Corporation (DFC) originated $562 million in loans, total portfolio of $3.6 billion.

Headline financials

Total Revenue

$9.23B

Previous: $8.11B+13.8%
EPS

$7.87

Previous: $10.91-27.9%
New Vehicle Units Sold

92.5K

Previous: 83.5K+10.7%
Used Vehicle Retail Units

109.2K

Previous: 80.6K+35.6%
New Vehicle Avg Price

$47.6K

Previous: $48.1K-0.9%
Used Vehicle Avg Price

$27.3K

Previous: $30.5K-10.3%
New Vehicle Avg Gross Profit

$3.47K

Previous: $4.64K-25.2%
Used Vehicle Avg Gross Profit

$1.79K

Previous: $2.64K-32.2%
F&I Avg Gross Profit

$1.79K

Previous: $2.06K-13.1%
Total Vehicle Avg Gross Profit

$4.35K

Previous: $5.71K-23.8%
Capital Expenditures

-$210M

Previous: -$97.1M-116.0%
Free Cash Flow

$4.5M

Previous: $200M-97.8%
Net Income

$214M

Previous: $297M-27.9%
Operating Income

$394M

Previous: $476M-17.3%
Gross Profit

$1.42B

Previous: $1.39B+2.8%
Stock-Based Comp

$13.4M

Previous: $10.2M+31.4%

Revenue & EPS history

Lithia Motors · Revenue · Quarterly

$9.23B

Q2 2024+13.8%vs Q2 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Lithia Motors · $7.69B total across 4 segments · Q3 2023

  • New Vehicle Retail
    $3.89B+17.5%
  • Used Vehicle Retail
    $2.62B+6.3%
  • Aftersales
    $838M+17.7%
  • Finance & Insurance
    $349M+4.8%

Forward guidance

The company did not provide specific forward guidance in the provided document. The document contains forward-looking statements regarding future market conditions, business strategy, network growth, Driveway e-commerce performance, capital allocations, and financial condition, but these are not presented as concrete guidance.

Tailwinds

  • Future market conditions, including anticipated car and other sales levels and the supply of inventory
  • Our business strategy and plans, including our achieving our long-term EPS and other financial targets
  • The growth, expansion, make-up and success of our network, including our finding accretive acquisitions and acquiring additional stores
  • Annualized revenues from acquired stores
  • The growth and performance of our Driveway e-commerce home solution and Driveway Finance Corporation (DFC), their synergies and other impacts on our business and our ability to meet Driveway and DFC-related targets

Headwinds

  • Future national and local economic and financial conditions, including as a result of regional or global public health issues, inflation and governmental programs, and spending
  • 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 Q2 2024

Historical avgQ2 2024

+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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