Lithia Motors Q1 EPS of $7.34 Beats Estimates as Revenue Tops $9.27 Billion
Lithia Motors reported Q1 net income of $100.4 million and GAAP EPS of $4.28, with adjusted earnings per share at $7.34, beating the $7.06 consensus. Revenue totaled $9.27 billion, slightly below the $9.36 billion forecast, as used vehicle GPU increased 9% sequentially.
1. First-Quarter Financial Results
Lithia Motors posted Q1 net income of $100.4 million, or $4.28 GAAP EPS, while adjusted EPS reached $7.34, exceeding the $7.06 consensus. Revenue totaled $9.27 billion, slightly below the $9.36 billion estimate, reflecting a slight deceleration in top-line growth.
2. Operational Performance
Used vehicle revenue rose 4.6% on a same-store basis, with used retail GPU up 9% sequentially, adding $133 per unit. Aftersales revenue climbed 3.8% and gross margin expanded by 100 basis points to 58.7%, while Driveway Finance originations hit a record $840 million with an 18% penetration rate.
3. Capital Allocation and Dividends
The company repurchased $259 million of shares, representing 4% of outstanding stock, at a weighted average price of $274.62. The board approved a quarterly dividend of $0.57 per share, payable May 22 to shareholders of record on May 8.
4. Balance Sheet Position
Lithia ended the quarter with approximately $1.4 billion in cash, marketable securities and credit availability, supporting its diversified platform and continued share repurchase program with $362.9 million remaining under authorization.