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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
Revenue by Segment
New Vehicle Retail Revenue
CapyFin.comUsed Vehicle Retail Revenue
CapyFin.comUsed Vehicle Wholesale Revenue
CapyFin.comFinance and Insurance Revenue
CapyFin.comAftersales Revenue
CapyFin.comFleet and Other Revenue
CapyFin.com 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