Lithia (LAD) To Report Earnings Tomorrow: Here Is What To Expect
Automotive retailer Lithia Motors (NYSE:LAD) will be reporting results tomorrow morning. Here's what to expect.
Lithia met analysts' revenue expectations last quarter, reporting revenues of $8.56 billion, up 22.7% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Is Lithia a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Lithia's revenue to grow 14.4% year on year to $9.28 billion, improving from the 12% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.04 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lithia has missed Wall Street's revenue estimates five times over the last two years.
Looking at Lithia's peers in the automotive and marine retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. CarMax's revenues decreased 7.5% year on year, meeting analysts' expectations, and OneWater reported a revenue decline of 8.7%, falling short of estimates by 11.2%. CarMax traded up 2.5% following the results.
Read our full analysis of CarMax's results here and OneWater's results here.
There has been positive sentiment among investors in the automotive and marine retail segment, with share prices up 3.7% on average over the last month. Lithia is up 6.1% during the same time and is heading into earnings with an average analyst price target of $320.5 (compared to the current share price of $266.69).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.