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Mar 31, 2023
Lithia Motors Q1 2023 Earnings Report
Lithia & Driveway reported increased revenue and decreased diluted EPS for Q1 2023.
Key Takeaways
Lithia & Driveway reported a 4% increase in revenue to $7.0 billion for the first quarter of 2023, marking the highest first quarter revenue in the company's history. However, diluted earnings per share decreased by 28% to $8.30, and net income decreased by 33% to $230 million compared to the same period in 2022. The company acquired 37 locations and increased the dividend to $0.50 per share.
Revenues increased by 4% compared to the first quarter of 2022.
New and used unit growth was 4% and 6%, respectively.
Total vehicle gross profit per unit decreased to $5,585, down $1,240.
Service, body, and parts revenues increased by 17%.
Revenue by Segment
Forward Guidance
The company continues to find accretive acquisitions that expand their network and grow DFC, which will increase profitability in the long-term, and progress toward the goals in their 2025 Plan. Their strong balance sheet and significant capital engine position them well to further consolidate the industry.
Positive Outlook
- Positioned well to meet consumer needs in-store or online.
- Continue to find accretive acquisitions that expand our network.
- Grow DFC, which will increase our profitability in the long-term.
- Progress toward the goals in our 2025 Plan.
- Strong balance sheet and significant capital engine position us well to further consolidate the industry.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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