NYSE$LAD

Lithia Motors Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Lithia Motors reported record revenue, EPS, and adjusted EPS, marking a successful third quarter.

Lithia & Driveway (LAD) reported a significant increase in revenue, EPS, and adjusted EPS for the third quarter of 2021. Revenue increased by 70% to $6.2 billion, EPS rose by 47% to $10.11, and adjusted EPS increased by 63% to $11.21. The company's performance was driven by strong growth in both new and used vehicle retail revenues, as well as contributions from e-commerce platforms and acquisitions.

  • Revenue increased by 70% to $6.2 billion compared to the third quarter of 2020.
  • Net income per diluted share increased by 47% to $10.11 compared to the third quarter of 2020.
  • Adjusted net income per diluted share increased by 63% to $11.21 compared to the third quarter of 2020.
  • Total vehicle gross profit per unit increased by 32.7% to $6,175.

Headline financials

Total Revenue

$6.17B

Previous: $3.62B+70.4%
EPS (adj)

$11.21

Previous: $6.89+62.7%
F&I Avg Gross Profit

$2.07K

Previous: $1.65K+25.8%
Total Vehicle Avg Gross Profit

$6.18K

Previous: $4.66K+32.7%
Capital Expenditures

-$194M

Previous: -$126M-54.5%
Free Cash Flow

$114M

Previous: $33.2M+242.8%
Net Income

$308M

Previous: $159M+93.9%
Operating Income

$480M

Previous: $240M+100.1%
Gross Profit

$1.19B

Previous: $652M+82.5%
Cash & Equivalents

$138M

Previous: $57.1M+141.3%
Total Assets

$10.2B

Previous: $6.4B+59.6%
Stock-Based Comp

$8.4M

Previous: $7.2M+16.7%

Revenue & EPS history

Lithia Motors · Revenue · Quarterly

$6.17B

Q3 2021+70.4%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Lithia Motors · $5.85B total across 4 segments · Q3 2021

  • New Vehicle Retail
    $2.9B+53.9%
  • Used Vehicle Retail
    $2.08B+90.2%
  • Aftersales
    $578M+60.9%
  • Finance & Insurance
    $297M+85.0%

Forward guidance

The company is focused on achieving $50 billion in revenue and $50 of earnings per share by 2025 through acquisitions and strategic network expansion.

Tailwinds

  • Acquiring $6.2 billion in annualized revenue year-to-date.
  • Pacing ahead of schedule toward achieving $50 billion in revenue and $50 of earnings per share by 2025.
  • Maintaining a robust pipeline of accretive deals.
  • Strategically expanding the network.
  • Meeting disciplined return thresholds.

Headwinds

  • Future economic and financial conditions, 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.
  • 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 Q3 2021

Historical avgQ3 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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