Lithia & Driveway Q2 revenue beats estimates
LAD•Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $9.79 bln | $9.63 bln (11 Analysts) |
| Q2 Adjusted EPS | Beat | $10.03 | $8.78 (12 Analysts) |
| Q2 EPS | $11.54 | ||
| Q2 Adjusted Net Income | Beat | $227.60 mln | $201.20 mln (8 Analysts) |
| Q2 Dividend | $0.70 |
Outlook and result drivers
Company did not provide specific guidance for the current quarter or full year.
- Aftersales growth - Aftersales gross profit increased 3.1% and gross margin rose 120 basis points on a same-store basis.
- Used vehicle profitability - Used retail gross profit per unit increased $339, or 20%, sequentially.
- Financing operations - Financing operations achieved record income of $37 mln and record originations of $884 mln, with a 17.5% penetration rate.
Analyst coverage and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy".
