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Jun 30, 2023
Lithia Motors Q2 2023 Earnings Report
Reported highest second quarter revenue in company history, but earnings per share decreased.
Key Takeaways
Lithia & Driveway reported a 12% increase in revenue, reaching $8.1 billion, the highest in the company's history for the second quarter. However, diluted EPS decreased by 7% to $10.78, and adjusted diluted EPS decreased by 10% to $10.91. The company acquired 14 locations expected to generate $1.5 billion in annualized revenues and divested three stores.
Revenues increased by 12%.
New vehicle unit growth was 22%, while used vehicle unit sales decreased by 1%.
Total vehicle gross profit per unit decreased by $853 to $5,710.
Service, body, and parts revenues increased by 18%.
Revenue by Segment
Forward Guidance
Lithia & Driveway is focused on profitably consolidating the largest retail sector globally by providing personal transportation solutions. They acquired 14 locations across the mid-Atlantic and southeast regions of the United States, expected to generate nearly $1.5 billion in annualized revenues.
Positive Outlook
- Strong performance across all business lines.
- Demonstrated strong operating discipline.
- Commitment to improving operating results through a relentless focus on high performance.
- Continue acquiring stores domestically and abroad.
- Well capitalized and free cash flow generation gives flexibility to deliver on strategy.
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
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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