NYSE$LAD

Lithia Motors Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Lithia Motors reported record revenue, but experienced a decrease in net income and earnings per share compared to the same quarter last year.

Lithia & Driveway (LAD) reported record third quarter revenue of $8.3 billion, a 13% increase year-over-year. However, net income attributable to LAD per diluted share decreased by 21% to $9.46, and adjusted net income per diluted share decreased by 17% to $9.25. The company acquired four stores and divested four stores during the quarter.

  • Revenues increased 13% to $8.3 billion.
  • New and used unit growth was 18% and 9%, respectively.
  • Total vehicle gross profit per unit decreased to $5,218, down $930.
  • Service, body, and parts revenues increased 18%.

Headline financials

Total Revenue

$8.28B

Previous: $7.3B+13.5%
EPS (adj)

$9.25

Previous: $11.08-16.5%
New Vehicle Units Sold

82.2K

Previous: 69.7K+17.8%
Used Vehicle Retail Units

88.6K

Previous: 81.2K+9.1%
New Vehicle Avg Price

$47.3K

Previous: $47.4K-0.3%
Used Vehicle Avg Price

$29.6K

Previous: $30.4K-2.6%
New Vehicle Avg Gross Profit

$4.37K

Previous: $5.79K-24.6%
Used Vehicle Avg Gross Profit

$2.13K

Previous: $2.48K-14.0%
F&I Avg Gross Profit

$2.05K

Previous: $2.21K-7.4%
Total Vehicle Avg Gross Profit

$5.22K

Previous: $6.14K-15.0%
Capital Expenditures

-$164M

Previous: -$210M+22.0%
Free Cash Flow

$97.8M

Previous: $120M-18.4%
Net Income

$262M

Previous: $330M-20.7%
Operating Income

$465M

Previous: $523M-11.0%
Gross Profit

$1.37B

Previous: $1.31B+4.3%
Cash & Equivalents

$256M

Previous: $173M+48.3%
Total Assets

$18.3B

Previous: $14.1B+29.8%
Stock-Based Comp

$11.1M

Previous: $8.6M+29.1%

Revenue & EPS history

Lithia Motors · Revenue · Quarterly

$8.28B

Q3 2023+13.5%vs Q3 2022
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 report contains forward-looking statements regarding future market conditions, business strategy, network growth, Driveway's performance, capital allocations, and financial condition. These statements are subject to risks and uncertainties.

Tailwinds

  • Future market conditions, including anticipated car and other sales levels and the supply of inventory
  • Our business strategy and plans, including achieving our 2025 Plan and related 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 Q3 2023

Historical avgQ3 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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