NYSE$LAD

Lithia Motors Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Lithia Motors reported record Q4 revenue with a 10% increase, but net income per diluted share decreased by 14%.

Lithia & Driveway (LAD) reported record fourth-quarter revenue of $7.7 billion, a 10% increase compared to the fourth quarter of 2022. However, net income attributable to LAD per diluted share decreased by 14% to $7.74. The company's service, body, and parts revenues increased by 14%.

  • Total revenues increased by 10%.
  • New vehicle same store units grew by 9.6%.
  • Service, body, and parts revenues increased 14%.
  • Driveway Finance Corporation (DFC) originated over $428 million in loans in Q4.

Headline financials

Total Revenue

$7.67B

Previous: $6.99B+9.8%
EPS (adj)

$8.24

Previous: $9.05-9.0%
New Vehicle Units Sold

80.6K

Previous: 68.2K+18.2%
Used Vehicle Retail Units

78.4K

Previous: 75.8K+3.4%
New Vehicle Avg Price

$49.3K

Previous: $48.1K+2.6%
Used Vehicle Avg Price

$28.9K

Previous: $29.4K-1.7%
New Vehicle Avg Gross Profit

$3.9K

Previous: $5.34K-27.0%
Used Vehicle Avg Gross Profit

$1.97K

Previous: $2.14K-8.0%
F&I Avg Gross Profit

$2.08K

Previous: $2.14K-2.7%
Total Vehicle Avg Gross Profit

$4.97K

Previous: $5.69K-12.6%
Capital Expenditures

-$66.5M

Previous: $93.3M-171.3%
Net Income

$216M

Previous: $250M-13.6%
Operating Income

$373M

Previous: $400M-6.9%
Gross Profit

$1.26B

Previous: $1.21B+4.3%
Stock-Based Comp

$10.4M

Previous: $9.4M+10.6%

Revenue & EPS history

Lithia Motors · Revenue · Quarterly

$7.67B

Q4 2023+9.8%vs Q4 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

Lithia & Driveway's forward guidance focuses on executing their long-term growth strategy, leveraging their financial position and diversified network to drive results and return capital to shareholders.

Tailwinds

  • Team is excited to turn efforts to even higher levels of execution in 2024.
  • Key components of long-term growth strategy are in place.
  • Financial position is strong.
  • Diversity and reach of network.
  • Positions them to continue to positively drive results and return capital to shareholders.

Headwinds

  • Future market conditions, including anticipated car and other sales levels and the supply of inventory
  • 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 Q4 2023

Historical avgQ4 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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