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Sep 30, 2022
Lithia Motors Q3 2022 Earnings Report
Lithia Motors reported record revenue and EPS, driven by strong performance across business lines and strategic acquisitions.
Key Takeaways
Lithia & Driveway (LAD) reported an 18% increase in revenue to $7.3 billion for Q3 2022, with diluted EPS of $11.92, an 18% increase year-over-year. The company also announced a dividend of $0.42 per share for the third quarter.
Revenues increased by 18.2%.
Gross profit increased by 10.5%.
Vehicle gross profit per unit was $6,139, a decrease of $36.
Driveway transactions increased by 327%.
Lithia Motors
Lithia Motors
Lithia Motors Revenue by Segment
Forward Guidance
Lithia & Driveway is focused on improving operating leverage as fundamentals normalize across the industry and is well-positioned with financial flexibility and liquidity to continue delivering growth with strong returns as they progress toward achieving their 2025 plan.
Positive Outlook
- Strong results across all business lines.
- Navigating the current environment effectively.
- Integrating a steady stream of acquisitions.
- Continuing to grow Driveway and Driveway Finance.
- Financial flexibility and liquidity to continue delivering growth.
Challenges Ahead
- Foreign currency exchange negatively impacted earnings per share by $0.54.
- Adjusted third quarter 2022 net income was $307 million, a 10% decrease compared to adjusted net income of $342 million for the same period of 2021.
- Vehicle gross profit per unit of $6,139, down $36.
- Adjusted SG&A as a percentage of gross profit was 59.6%.
- Shares outstanding reduced by 10%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income