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Mar 31, 2024
Lithia Motors Q1 2024 Earnings Report
Lithia Motors reported record revenue and decreased net income for Q1 2024.
Key Takeaways
Lithia & Driveway (LAD) reported a record first quarter revenue of $8.6 billion, a 23% increase compared to the first quarter of 2023. However, net income decreased by 28% to $165 million, with diluted earnings per share at $5.89, a 29% decrease year-over-year.
Total revenues increased by 23%.
New vehicle same store units grew by 3.6%.
Service, body, and parts revenues increased 24%.
Driveway Finance Corporation (DFC) originated approximately $493 million in loans.
Revenue by Segment
Forward Guidance
The company is focused on improving business operations and rebalancing capital allocation towards shareholder returns.
Positive Outlook
- Committing to driving improvements across the business.
- Model is diversified with adjacencies maturing and on a path to profitability.
- Continuing to deliver the best experience for customers.
- Rebalancing capital allocation from acquisitions toward returns to shareholders.
- Long-term target of delivering $2 in EPS per billion in revenues.
Challenges Ahead
- Industry continued to normalize inventories and profitability.
- Total vehicle gross profit per unit decreased by $1,239.
- Unrealized foreign currency losses negatively impacted earnings per share by $0.15.
- Adjusted first quarter 2024 net income was $171 million, a 27% decrease compared to adjusted net income of $233 million for the same period of 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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