MEDFORD, Ore. - Lithia Motors & Driveway (NYSE:LAD) reported better-than-expected third quarter earnings on Wednesday, though revenue came in below analyst forecasts. The auto retailer's stock edged up 0.49% following the results.
Lithia posted adjusted earnings per share of $8.21 for Q3, surpassing the analyst consensus of $7.59. However, revenue of $9.2 billion fell short of expectations for $9.5 billion.
The company reported record third quarter revenue, up 11% YoY from $8.3 billion in Q3 2023. Lithia said this growth was driven by its ability to leverage size and scale while focusing on operational efficiency.
"Our third quarter performance was strong and demonstrated the team's ability to grow our business, leveraging size and scale and seizing new opportunities while focusing on operational efficiency," said Bryan DeBoer, President and CEO.
Adjusted net income declined 14% to $222 million compared to $258 million in the same period last year. The company's financing operations turned profitable for the second consecutive quarter, generating income of $1 million.
Lithia's aftersales gross profit increased 6.3% on a same-store basis. The company's Driveway Finance Corporation originated $518 million in loans during the quarter.
For the first nine months of 2024, Lithia's revenue increased 16% to $27.0 billion. The company acquired over $5.9 billion in annualized revenues year-to-date through acquisitions.
Lithia ended the quarter with approximately $1.1 billion in cash and available credit. The Board of Directors approved a dividend of $0.53 per share for the third quarter.
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