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Dec 31, 2020
Lithia Motors Q4 2020 Earnings Report
Lithia Motors reported record fourth quarter revenue and earnings, driven by strong performance across all segments.
Key Takeaways
Lithia Motors & Driveway reported a 21% increase in revenue to $3.9 billion and a 143% increase in net income per diluted share to $7.02 for the fourth quarter of 2020. Adjusted net income per diluted share was $5.46, an 85% increase. The company's strong performance, coupled with strategic acquisitions and the launch of Driveway, gives them confidence in their five-year plan.
Total company revenues increased by 20.6%.
New vehicle retail sales increased by 19.0%.
Used vehicle retail sales increased by 23.9%.
F&I per unit increased by 13.1% to $1,723.
Revenue by Segment
Forward Guidance
Lithia Motors is focused on expanding their network and leveraging their national digital home channel Driveway to achieve their five-year plan of reaching $50 billion in revenue and $50 in earnings per share.
Positive Outlook
- Strong balance sheet with approximately $1.4 billion in cash.
- Over $350 million of adjusted operating cash flows.
- Ability to add over $7 billion of additional revenue to their network this year.
- Strategic acquisitions in key geographic locations.
- Successful launch of national e-commerce home solution Driveway.
Challenges Ahead
- Future economic and financial conditions
- Changes in customer demand
- Relationship with vehicle manufacturers and suppliers
- Risks associated with indebtedness
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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