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Lithia’s Record Quarter Keeps the Bull Case AliveLithia Motors NYSE: LAD reported third-quarter revenue just below $10 billion and adjusted diluted earnings per share of $10.34, up 9% from a year earlier, as growth in used vehicles, aftersales and financing operations helped offset softer new-vehicle results.

Chairman and Chief Executive Officer Bryan DeBoer said same-store revenue declined 1.4% against a comparison period in which revenue rose nearly 8%. Total vehicle gross profit per unit was $3,958, down $63 year over year. Lithia’s used-vehicle gross profit increased 9.3%, while aftersales gross profit rose 2.4%.

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Used Vehicles and Aftersales Offset New-Vehicle Pressure
These 4 Mid-Caps Just Announced Big Buyback PlansNew-vehicle revenue declined 2.6% as unit sales fell 2.7%. Import-brand units increased 0.8%, while domestic units fell 8.8% and luxury units declined 2.9%. DeBoer characterized the conditions as cyclical and said comparisons should ease in the fourth quarter.

Used-vehicle profitability was a key contributor. Used gross profit per unit increased 13%, or $234, year over year, to $1,993. DeBoer said profitability in the company’s core category of three- to eight-year-old vehicles increased 44%, supported by its dynamic AI pricing efforts.

Ladder Corporation: Climbing Higher And Paying 9% Yield During the question-and-answer session, DeBoer said Lithia expects used-vehicle gross profit per unit to remain around $2,000 as a baseline into 2027, though he noted that the used-vehicle market typically softens in the fourth quarter and could produce a sequential decline.

Aftersales margins expanded by 100 basis points to 59.5%, with the company reporting its eighth consecutive quarter of aftersales gross-profit growth. In North America, nearly one in four customers chose lifetime oil contracts, an increase of more than 200 basis points from the prior year, according to DeBoer.

Responding to questions on service demand, DeBoer said customer-pay revenue was flat, warranty revenue increased 6.1%, wholesale parts revenue fell 4.3%, and collision revenue declined 1.5%. Customer-pay gross profit was flat, while warranty gross profit rose 10%. He said warranty growth benefited partly from franchise-law changes in Florida, New Jersey and Virginia affecting technician compensation.

DFC Expands Originations and Managed Receivables
Driveway Finance Corporation, Lithia’s captive finance operation, generated $32 million in finance operations income, an increase of nearly 70% from a year earlier. Average managed receivables rose 22%, reaching $5 billion.

Chief Financial Officer Tina Miller said DFC originated $937 million during the quarter and recorded a 4.7% net interest margin, up 10 basis points year over year as funding costs improved with scale. North American penetration reached 18.3%, approaching the company’s target of 20% or more.

DFC’s average origination FICO score was 752 and front-end loan-to-value was 94.6%. Its allowance for loan losses stood at 2.8% of receivables, down from 3.1%.

Senior Vice President Chuck Lietz said the finance portfolio continued to perform well, with delinquency rates 20% better across the credit spectrum on both a year-over-year and sequential basis. He said DFC evaluates contracts individually on a risk-adjusted net-present-value basis as it balances potential funding-cost increases with supporting dealership sales.

Costs, AI Rollout and U.K. Performance
Adjusted selling, general and administrative expense was 68.5% of gross profit, unchanged from the second quarter. In North America, same-store SG&A was 65.7% of gross profit, improving 50 basis points sequentially.

Lithia continues to target global SG&A below 60% of gross profit. DeBoer said the rollout of Pinewood.AI across North American stores is expected to be completed by the end of 2028 and that cost benefits could trail the rollout by 12 to 24 months. He said roughly half of the projected 1,000-basis-point reduction to a sub-60% cost structure is expected to come from agentic AI, with the balance coming from volume improvement and operational changes at underperforming stores.

The company’s U.K. business posted gross-profit growth of 7%, led by a 13.6% increase in aftersales gross profit. New-vehicle unit sales rose 10.6% and new-vehicle gross profit increased 8.5%, aided by partnerships with Chinese manufacturers. Used retail units increased 4.6% and used-vehicle gross profit per unit rose 4.9%.

DeBoer said about half of the U.K.’s recent growth was attributable to Chinese brands, while the company also continued to grow luxury franchises including BMW, Porsche, Mercedes and Land Rover.

Cash Flow, Buybacks and Acquisitions
Adjusted EBITDA was $443.5 million, up 1.3% year over year. Adjusted cash flow from operations totaled $377 million for the quarter, a 12% increase from a year earlier, bringing the year-to-date total to $987 million after adjusting for a first-quarter floor-plan-related benefit.

Lithia repurchased 246,317 shares for $85 million during the quarter at an average price of $345 per share. The company said it has returned more than $627 million to shareholders through buybacks and dividends year to date, while its share count was 11% lower than a year ago.

Net leverage declined to 3.1 times from 3.2 times at the end of the second quarter. Miller said Lithia remains focused on returning below its long-term target of three times leverage while preserving flexibility for repurchases and acquisitions.

During the quarter, the company acquired four Gossett Hyundai and Kia stores in Memphis, Tennessee, which Lithia expects to contribute $250 million in annualized revenue. Year to date, Lithia has acquired $1.2 billion in annualized revenue and divested approximately $250 million of underperforming revenue.

About Lithia Motors (NYSE:LAD)Lithia Motors, Inc is an automotive retailer headquartered in Medford, Oregon. Operating under the Lithia & Driveway name, the company sells new and used vehicles through a network of franchised dealerships and digital retail channels. Its dealerships represent a broad range of domestic, Asian and European automotive brands.

In addition to vehicle sales, Lithia provides related services including vehicle financing and insurance products, parts and maintenance, collision repair, and other after-sales support.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Although the revenue and EPS for Lithia Motors (LAD) give a sense of how its business performed in the quarter ended September 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Key Highlights

Record third quarter revenues of $9.9 billionUsed retail GPUs increased $197, or 11%, year over yearAftersales gross profit increased by 2.4% and gross margin was 59.5%, a 100-basis point increase, on a same-store basisFinancing Operations income of $32.3 million, a 69% increase year over year, with record originations of $937 million, and a 18.3% penetration rateThird quarter diluted earnings per share of $13.22, a 54% increase, and adjusted diluted earnings per share of $10.34, a 9% increaseRepurchased $85 million of shares, representing 1.1% of outstanding shares in the quarter, and 8.7% of outstanding shares in 2026Announced a 7% increase to quarterly dividend MEDFORD, Ore., Oct. 21, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD), the largest global automotive retailer, today reported financial results for the third quarter of 2026.

"Our people and our ecosystem set Lithia & Driveway apart again this quarter, delivering record quarterly revenues and continued growth in earnings per share. Used vehicle profitability strengthened, aftersales margins expanded, cost discipline continued, and Financing Operations delivered strong income growth on the strength of a high-quality credit portfolio," said Bryan DeBoer, President and CEO. "The capital decisions of the past year are reflected in our financial results, with a meaningfully lower share count magnifying every dollar we earn. With the flexibility of our cash generation and strong balance sheet, the earnings power of our model continues to build as we head into 2027.”

Third Quarter 2026 Operational Summary
Third quarter 2026 revenue increased 3% to $9.9 billion from $9.7 billion in the third quarter of 2025.

Third quarter 2026 diluted earnings per share attributable to LAD was $13.22, a 54% increase from $8.61 per share reported in the third quarter of 2025. After adjusting for the unrealized gain on our investment in Pinewood Technologies Group PLC and other non-core items, adjusted diluted earnings per share attributable to LAD for the third quarter of 2026 was $10.34, a 9% increase compared to $9.50 per share in the same period of 2025.

Third quarter 2026 net income was $292.9 million, a 34.0% increase compared to net income of $218.6 million in the third quarter of 2025. After adjusting for the unrealized gain on our investment in Pinewood Technologies Group PLC and other non-core items, adjusted net income for the third quarter 2026 was $229.3 million, an 5% decrease compared to adjusted net income of $240.9 million for the same period of 2025.

The financial measures discussed in this release include both GAAP and non-GAAP measures. See “Reconciliation of Certain Non-GAAP Measures”.

For the first nine months of 2026 revenues increased 2% to $29.0 billion, compared to $28.4 billion in 2025.

Diluted earnings per share attributable to LAD for the first nine months of 2026 was $28.77, compared to $26.42 per share in 2025, an increase of 9%. Adjusted diluted earnings per share attributable to LAD for the first nine months of 2026 increased 4% to $27.61 from $26.60 in the same period of 2025.

Corporate Development
In the third quarter of 2026, LAD acquired two stores, which are expected to generate $150 million in annualized revenues, and divested two stores representing $115 million in annualized revenues.

In October 2026, LAD continued to expand its network in the Southeast region with the acquisition of two Hyundai and two Kia stores in Memphis, TN. These additions add $250 million of expected annualized revenue.

LAD has acquired $1.17 billion in expected annualized revenues year to date.

Balance Sheet Update
LAD ended the third quarter with approximately $1.4 billion in cash and cash equivalents, marketable securities, and availability on our revolving lines of credit.

Dividend Payment and Share Repurchases
The Board of Directors approved a dividend of $0.75 per share related to third quarter 2026 financial results. The dividend is expected to be paid on November 20, 2026 to shareholders of record on November 6, 2026.

During the third quarter of 2026, we repurchased approximately 246,000 shares at a weighted average price of $345. Under the current share repurchase authorization approximately $535 million remains available as of September 30, 2026.

Board of Directors Update
The Board of Directors has appointed Bryan B. DeBoer, our President and Chief Executive Officer, as Chairman of the Board, effective October 19, 2026. In this expanded role, Bryan DeBoer will serve as both Chairman and Chief Executive Officer, promoting communication and collaboration between management and the Board. Mr. DeBoer will continue to lead the Company’s strategic vision and operations execution.

Sidney B. DeBoer will become Vice Chairman and will continue to serve on the Board. Louis P. Miramontes will continue to serve as Lead Independent Director, ensuring strong independent Board leadership and reinforcing its oversight of management and governance.

"Sid established Lithia on the belief that earning trust, one customer and one community at a time, creates value that compounds over decades," said Bryan DeBoer, Chairman and Chief Executive Officer. "He took the company public and laid the foundation of Growth Powered by People for the network we operate today across the U.S., Canada and the U.K., and we're grateful his counsel will continue as Vice Chairman. I'm honored by the Board's confidence. Our strategy and priorities are unchanged: earn customers for life, keep growing our network and adjacent businesses, and allocate capital with discipline to drive long-term shareholder value."

Third Quarter Earnings Conference Call and Updated Presentation
The third quarter 2026 conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting third quarter 2026 results has been added to our investor relations website. To listen live on our website or for replay, visit investors.lithiadriveway.com and click on Quarterly Earnings.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

Sites
www.lithia.com 
investors.lithiadriveway.com 
www.lithiacareers.com 
www.driveway.com 
www.greencars.com 
www.drivewayfinancecorp.com 

Lithia & Driveway on Facebook
https://www.facebook.com/LithiaMotors 
https://www.facebook.com/DrivewayHQ 

Lithia & Driveway on X
https://x.com/lithiamotors 
https://x.com/DrivewayHQ 
https://x.com/GreenCarsHQ 

Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/ 

Lithia & Driveway on YouTube
https://www.youtube.com/@Lithia_Motors/featured 

Forward-Looking Statements
Certain statements in this presentation, and at times made by our officers and representatives, constitute forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Generally, you can identify forward-looking statements by terms such as “project,” “outlook,” “target,” “may,” “will,” “would,” “should,” “seek,” “expect,” “plan,” “intend,” “forecast,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “likely,” “ensure,” “goal,” “strategy,” “future,” “maintain,” and “continue” or the negative of these terms or other comparable terms. Examples of forward-looking statements in this presentation include, among others, statements regarding:

The profitability of our strategy and growthFuture market conditions, including anticipated vehicle and other sales, gross profit and inventory supplyOur business strategy and plans, including our achieving our long-term financial targetsThe growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional storesAnnualized revenues from acquired stores or achieving target returnsThe growth and performance of our Driveway e-commerce home solution and Driveway Finance Corporation (DFC), their synergies and other impacts on our business and our ability to meet Driveway and DFC-related targetsThe impact of sustainable vehicles and other market and regulatory changes on our business, including evolving vehicle distribution modelsOur capital allocations and uses and levels of capital expenditures in the futureExpected operating results, such as improved store performance, continued improvement of selling, general and administrative expenses as a percentage of gross profit and any projectionsOur anticipated financial condition and liquidity, including from our cash and the future availability of our credit facilities, unfinanced real estate and other financing sourcesOur continuing to purchase shares under our share repurchase programOur compliance with financial and restrictive covenants in our credit facilities and other debt agreementsOur programs and initiatives for team member recruitment, training, and retentionOur strategies and targets for customer retention, growth, market position, operations, financial results and risk management Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this presentation. Therefore, you should not rely on any of these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation:

Future national and local economic and financial conditions, including as a result of inflation, interest rates, tariffs, governmental actions, programs and spending, and public health issuesThe market for dealerships, including the availability of stores to us for an acceptable priceChanges in customer demand, levels of consumer debt, consumer confidence and manufacturer sales incentives, and the electric vehicle landscape and the impact of evolving digital technologiesChanges in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery modelsChanges in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehiclesRisks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable termsThe adequacy of our cash flows and other conditions which may affect our ability to fund capital expenditures, obtain favorable financing and pay our quarterly dividend at planned levelsDisruptions to our technology network including computer systems, as well as natural events such as severe weather or man-made or other disruptions of our operating systems, facilities or equipmentGovernment regulations and legislationThe risks set forth throughout “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in “Part I, Item 1A. Risk Factors” of our most recent Annual Report on Form 10-K, and in “Part II, Item 1A. Risk Factors” of our Quarterly Reports on Form 10-Q, and from time to time in our other filings with the SEC. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures
All “adjusted” financial measures in this presentation are non-GAAP financial measures, as are EBITDA and net debt. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. We caution you not to place undue reliance on such non-GAAP measures and to consider them together with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.

LAD
Consolidated Statements of Operations (Unaudited)
(In millions except per share data)

 Three months ended
 % Nine months ended
 % September 30, Increase September 30, Increase  2026   2025  (Decrease)  2026   2025  (Decrease)Revenues:           New vehicle$4,868.6  $4,792.4  1.6% $14,077.1  $14,076.3  —%Used vehicle 3,630.1   3,463.3  4.8   10,647.8   10,192.3  4.5 Finance and insurance 361.4   378.6  (4.5)  1,087.5   1,116.8  (2.6)Aftersales 1,086.6   1,041.5  4.3   3,197.0   3,051.7  4.8 Total revenues 9,946.7   9,675.8  2.8%  29,009.4   28,437.1  2.0%Cost of sales:           New vehicle 4,590.7   4,501.0  2.0   13,255.7   13,178.1  0.6 Used vehicle 3,419.2   3,274.4  4.4   10,035.2   9,609.2  4.4 Aftersales 441.0   434.4  1.5   1,303.6   1,288.3  1.2 Total cost of sales 8,450.9   8,209.8  2.9   24,594.5   24,075.6  2.2 Gross profit 1,495.8   1,466.0  2.0%  4,414.9   4,361.5  1.2%            Finance operations income 32.3   19.1  69.1%  90.0   51.7  74.1%            SG&A expense 1,036.3   998.0  3.8   3,088.4   2,965.3  4.2 Depreciation and amortization 71.6   65.5  9.3   212.3   194.6  9.1 Income from operations 420.2   421.6  (0.3)%  1,204.2   1,253.3  (3.9)%Floor plan interest expense (70.3)  (57.8) 21.6   (195.9)  (169.8) 15.4 Other interest expense (63.1)  (68.3) (7.6)  (196.0)  (200.5) (2.2)Other income (expense) 104.2   (13.3) 883.5   72.7   35.9  NMIncome before income taxes 391.0   282.2  38.6%  885.0   918.9  (3.7)%Income tax expense (98.1)  (63.6) 54.2   (228.4)  (230.9) (1.1)Income tax rate 25.1%  22.5%    25.8%  25.1%  Net income$292.9  $218.6  34.0% $656.6  $688.0  (4.6)%Net income attributable to non-controlling interests (1.8)  (1.5) 20.0%  (5.1)  (5.3) (3.8)%Net income attributable to LAD$291.1  $217.1  34.1% $651.5  $682.7  (4.6)%            Diluted earnings per share attributable to LAD:           Net income per share$13.22  $8.61  53.5% $28.77  $26.42  8.9%            Diluted shares outstanding 22.0   25.2  (12.7)%  22.6   25.8  (12.4)% NM - not meaningful

LAD
Key Performance Metrics (Unaudited)

 Three months ended
 % Nine months ended
 % September 30, Increase September 30, Increase  2026   2025  (Decrease)  2026   2025  (Decrease)Gross margin           New vehicle 5.7%  6.1% (40)bps  5.8%  6.4% (60)bpsUsed vehicle 5.8   5.5  30   5.8   5.7  10 Finance and insurance 100.0   100.0  —   100.0   100.0  — Aftersales 59.4   58.3  110   59.2   57.8  140 Gross profit margin 15.0   15.2  (20)  15.2   15.3  (10)            Unit sales           New vehicle 105,471   104,332  1.1%  304,347   305,151  (0.3)%Used vehicle retail 109,791   109,097  0.6   326,056   325,476  0.2             Average selling price (excluding agency)           New vehicle$46,777  $46,804  (0.1)% $46,938  $47,165  (0.5)%Used vehicle retail 29,499   28,381  3.9   29,180   27,990  4.3             Average gross profit per unit           New vehicle$2,635  $2,793  (5.7)% $2,699  $2,943  (8.3)%Used vehicle retail 1,970   1,773  11.1   1,889   1,818  3.9 Finance and insurance 1,733   1,818  (4.7)  1,782   1,814  (1.8)Total vehicle(1) 3,949   4,025  (1.9)  4,000   4,120  (2.9)            Revenue mix           New vehicle 48.9%  49.5%    48.5%  49.5%  Used vehicle 36.5   35.8     36.7   35.8   Finance and insurance, net 3.6   3.9     3.7   3.9   Aftersales 11.0   10.8     11.1   10.8               Gross Profit Mix           New vehicle 18.6%  19.9%    18.6%  20.6%  Used vehicle 14.1   12.9     13.9   13.4   Finance and insurance, net 24.2   25.8     24.6   25.6   Aftersales 43.1   41.4     42.9   40.4     Adjusted As reported Adjusted As reported Three months
ended September
30, Three months
ended September
30, Nine months
ended September
30, Nine months
ended September
30,Other metrics2026  2025  2026  2025  2026  2025  2026  2025 SG&A as a % of revenue10.4% 10.3% 10.4% 10.3% 10.6% 10.4% 10.6% 10.4%SG&A as a % of gross profit68.8  67.9  69.3  68.1  69.6  67.9  70.0  68.0 Operating profit as a % of revenue4.3  4.4  4.2  4.4  4.2  4.4  4.2  4.4 Operating profit as a % of gross profit28.5  29.0  28.1  28.8  27.6  28.8  27.3  28.7 Pretax margin3.1  3.2  3.9  2.9  3.0  3.2  3.1  3.2 Net profit margin2.3  2.5  2.9  2.3  2.2  2.4  2.3  2.4  (1)   Includes the sales and gross profit related to new, used, and finance and insurance and unit sales for new and used retail

LAD
Same Store Operating Highlights (Unaudited)

 Three months ended 
 % Nine months ended 
 % September 30, Increase September 30, Increase  2026   2025  (Decrease)  2026   2025  (Decrease)Revenues           New vehicle$4,608.3  $4,729.9  (2.6)% $13,293.7  $13,784.0  (3.6)%Used vehicle 3,419.4   3,409.5  0.3   10,023.4   9,932.6  0.9 Finance and insurance 345.1   375.6  (8.1)  1,039.6   1,102.0  (5.7)Aftersales 1,027.9   1,021.0  0.7   3,018.5   2,964.1  1.8 Total revenues 9,400.6   9,536.0  (1.4)  27,375.2   27,782.8  (1.5)            Gross profit           New vehicle$263.9  $288.4  (8.5)% $778.0  $881.6  (11.8)%Used vehicle 203.1   185.8  9.3   586.6   575.2  2.0 Finance and insurance 345.1   375.6  (8.1)  1,039.6   1,102.0  (5.7)Aftersales 611.1   596.9  2.4   1,786.0   1,721.2  3.8 Total gross profit 1,423.2   1,446.7  (1.6)  4,190.2   4,280.1  (2.1)            Gross margin           New vehicle 5.7%  6.1% (40)bps  5.9%  6.4% (50)bpsUsed vehicle 5.9   5.4  50   5.9   5.8  10 Finance and insurance 100.0   100.0  —   100.0   100.0  — Aftersales 59.5   58.5  100   59.2   58.1  110 Gross profit margin 15.1   15.2  (10)  15.3   15.4  (10)            Unit sales           New vehicle 100,559   103,318  (2.7)%  289,351   300,917  (3.8)%Used vehicle retail 104,612   108,039  (3.2)  311,741   320,566  (2.8)            Average selling price (excluding agency)           New vehicle$46,470  $46,652  (0.4)% $46,659  $46,843  (0.4)%Used vehicle retail 29,197   28,200  3.5   28,770   27,703  3.9             Average gross profit per unit           New vehicle$2,624  $2,792  (6.0)% $2,689  $2,930  (8.2)%Used vehicle retail 1,993   1,759  13.3   1,893   1,818  4.1 Finance and insurance 1,736   1,821  (4.7)  1,784   1,816  (1.8)Total vehicle(1) 3,958   4,021  (1.6)  4,000   4,117  (2.8) (1)   Includes the sales and gross profit related to new, used, and finance and insurance and unit sales for new and used retail

LAD
Other Highlights (Unaudited)

 Three months ended September 30, Nine months ended September 30, 2026  2026 Key Performance by CountryTotal Revenue Total Gross Profit Total Revenue Total Gross ProfitUnited States75.9%  80.8%  76.3%  81.4% United Kingdom20.5%  16.4%  20.2%  15.9% Canada3.6%  2.8%  3.5%  2.7%   As of September 30, December 31, September 30,Days’ Supply(1)2026 2025 2025New vehicle inventory54 54 52Used vehicle inventory45 48 46 (1) Days’ supply in inventory is calculated using on-ground inventory unit levels and a 30-day total unit sales volumes, both at the end of each reporting period.

Selected Financing Operations Financial Information

 Three months ended September 30, Nine months ended September 30,($ in millions) 2026  % (1)  2025  % (1)  2026  % (1)  2025  % (1)Interest and fee income$122.1  8.7  $104.9  9.2  $349.0  8.8  $298.0  9.2 Interest expense (56.3) (4.0)  (52.1) (4.6)  (161.4) (4.1)  (150.0) (4.6)Total interest margin$65.8  4.7  $52.8  4.6  $187.6  4.7  $148.0  4.6 Lease income 29.2     23.4     79.5     67.7   Lease costs (25.6)    (18.6)    (68.3)    (54.0)  Lease income, net 3.6     4.8     11.2     13.7   Provision expense (22.5) (1.6)  (25.8) (2.3)  (64.7) (1.6)  (72.5) (2.2)Other financing operations expenses (14.6) (1.0)  (12.7) (1.1)  (44.1) (1.1)  (37.5) (1.2)Finance operations income$32.3    $19.1    $90.0    $51.7                   Total average managed finance receivables$5,558.0    $4,541.8    $5,290.6    $4,316.3    (1)   Annualized percentage of total average managed finance receivables

LAD
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)

 September 30, 2026 December 31, 2025Cash, restricted cash, and cash equivalents$374.0 $341.8Trade receivables, net 1,132.9  1,134.1Inventories, net 6,624.3  6,119.6Other current assets 261.8  262.5Total current assets$8,393.0 $7,858.0    Property and equipment, net 5,074.7  4,936.0Finance receivables, net 5,578.6  4,755.1Intangibles 5,630.7  5,254.1Other non-current assets 2,159.0  2,304.0Total assets$26,836.0 $25,107.2    Floor plan notes payable 6,566.8  5,008.9Other current liabilities 1,838.5  1,687.8Total current liabilities$8,405.3 $6,696.7    Long-term debt, less current maturities 6,828.2  7,274.9Non-recourse notes payable, less current maturities 2,746.3  2,404.2Other long-term liabilities and deferred revenue 2,215.3  2,103.0Total liabilities$20,195.1 $18,478.8    Equity 6,640.8  6,628.4Total liabilities and equity$26,836.0 $25,107.2 LAD
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)

 Nine months ended September 30,Cash flows from operating activities: 2026   2025 Net income$656.6  $688.0 Adjustments to reconcile net income to net cash (used in) provided by operating activities 391.1   428.5 Changes in:   Inventories (555.0)  44.8 Finance receivables (831.4)  (671.3)Floor plan notes payable 87.6   (151.0)Other operating activities 46.2   (106.0)Net cash (used in) provided by operating activities (204.9)  233.0 Cash flows from investing activities:   Capital expenditures (252.3)  (257.7)Cash paid for acquisitions, net of cash acquired (264.8)  (417.6)Net proceeds from sales of stores 31.9   178.1 Other investing activities 4.0   17.8 Net cash used in investing activities (481.2)  (479.4)Cash flows from financing activities:   Net borrowings on floor plan notes payable, non-trade 1,542.2   73.3 Net borrowings on non-recourse notes payable 291.8   136.3 Net borrowings on other debt and finance lease liabilities (456.1)  827.7 Proceeds from issuance of common stock 21.2   21.0 Repurchase of common stock (624.5)  (662.3)Dividends paid (41.1)  (42.1)Other financing activity (11.2)  (89.4)Net cash provided by financing activities 722.3   264.5 Effect of exchange rate changes on cash and restricted cash (3.5)  4.7 Change in cash, restricted cash, and cash equivalents 32.7   22.8 Cash, restricted cash, and cash equivalents at beginning of period 391.3   445.8 Cash, restricted cash, and cash equivalents at end of period 424.0   468.6  LAD
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)
(In millions)

 Nine months ended September 30,Net cash provided by operating activities 2026   2025 As reported$(204.9) $233.0 Floor plan notes payable, non-trade, net(1) 1,542.2   73.3 Adjust: finance receivables activity 831.4   671.3 Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory (43.5)  (62.9)Adjusted$2,125.2  $914.7  (1) Includes the impact of converting inventory‑secured revolvers to floorplan facilities during 2026, increasing net floorplan borrowings and adjusted operating cash flows $1,138.3 million.

LAD
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In millions, except for per share data)

 Three Months Ended September 30, 2026 As reported Net loss on
disposal of
stores Investment
gain Insurance
reserves Tax attribute AdjustedSelling, general and administrative 1,036.3   (5.8)  —   (0.8)  —   1,029.7 Operating income 420.2   5.8   —   0.8   —   426.8 Other income (expense), net 104.2   —   (88.8)  —   —   15.4             Income before income taxes 391.0   5.8   (88.8)  0.8   —   308.8 Income tax (provision) benefit (98.1)  (1.6)  23.7   (0.2)  (3.3)  (79.5)Net income$292.9  $4.2  $(65.1) $0.6  $(3.3) $229.3 Net income attributable to non-controlling interests (1.8)  —   —   —   —   (1.8)Net income attributable to LAD$291.1  $4.2  $(65.1) $0.6  $(3.3) $227.5             Diluted earnings per share attributable to LAD$13.22  $0.19  $(2.95) $0.03  $(0.15) $10.34 Diluted share count 22.0             Three Months Ended September 30, 2025 As reported Net gain on
disposal of
stores Investment
loss Insurance
reserves Acquisition
expenses Tax attribute AdjustedSelling, general and administrative$998.0  $15.4  $—  $(2.5) $(15.9) $—  $995.0 Operating income 421.6   (15.4)  —   2.5   15.9   —   424.6 Other income (expense), net (13.3)  —   22.7   —   —   —   9.4               Income before income taxes 282.2   (15.4)  22.7   2.5   15.9   —   307.9 Income tax (provision) benefit (63.6)  7.2   (6.0)  (0.5)  (0.6)  (3.5)  (67.0)Net income$218.6  $(8.2) $16.7  $2.0  $15.3  $(3.5) $240.9 Net income attributable to non-controlling interests$(1.5) $—  $—  $—  $—  $—  $(1.5)Net income attributable to LAD$217.1  $(8.2) $16.7  $2.0  $15.3  $(3.5) $239.4               Diluted earnings per share attributable to LAD$8.61  $(0.32) $0.66  $0.08  $0.61  $(0.14) $9.50 Diluted share count 25.2              LAD
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In millions, except for per share data)

 Nine Months Ended September 30, 2026 As reported Net gain on
disposal of
stores Investment
gain Insurance
reserves Acquisition
expenses Contract
buyouts Tax attribute AdjustedSelling, general and administrative$3,088.4  $9.2  $—  $(3.2) $(0.7) $(20.3) $—  $3,073.4 Operating income 1,204.2   (9.2)  —   3.2   0.7   20.3   —   1,219.2 Other income (expense), net 72.7   —   (43.7)  —   —   —   —   29.0                 Income before income taxes 885.0   (9.2)  (43.7)  3.2   0.7   20.3   —   856.3 Income tax (provision) benefit (228.4)  2.4   11.6   (0.9)  (0.1)  (5.1)  (5.3)  (225.8)Net income$656.6  $(6.8) $(32.1) $2.3  $0.6  $15.2  $(5.3) $630.5 Net income attributable to non-controlling interests (5.1)  —   —   —   —   —   —   (5.1)Net income attributable to LAD$651.5  $(6.8) $(32.1) $2.3  $0.6  $15.2  $(5.3) $625.4                 Diluted earnings per share attributable to LAD$28.77  $(0.30) $(1.42) $0.10  $0.03  $0.67  $(0.24) $27.61 Diluted share count 22.6                 Nine Months Ended September 30, 2025 As reported Net gain on
disposal of
stores Investment
gain Insurance
reserves Acquisition
expenses Tax attribute AdjustedSelling, general and administrative$2,965.3  $17.7  $—  $(5.4) $(16.1) $—  $2,961.5 Operating income 1,253.3   (17.7)  —   5.4   16.1   —   1,257.1 Other income (expense), net 35.9   —   (4.1)  —   —   —   31.8               Income before income taxes 918.9   (17.7)  (4.1)  5.4   16.1   —   918.6 Income tax (provision) benefit (230.9)  11.6   1.0   (1.4)  (0.6)  (5.7)  (226.0)Net income$688.0  $(6.1) $(3.1) $4.0  $15.5  $(5.7) $692.6 Net income attributable to non-controlling interests (5.3)  —   —   —   —   —   (5.3)Net income attributable to LAD$682.7  $(6.1) $(3.1) $4.0  $15.5  $(5.7) $687.3               Diluted earnings per share attributable to LAD$26.42  $(0.24) $(0.12) $0.16  $0.60  $(0.22) $26.60 Diluted share count 25.8              LAD
Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited)
(In millions)

 Three months ended
 % Nine months ended 
 % September 30, Increase September 30, Increase  2026   2025  (Decrease)  2026   2025  (Decrease)EBITDA and Adjusted EBITDA           Net income$292.9  $218.6  34.0% $656.6  $688.0  (4.6)%Flooring interest expense 70.3   57.8  21.6   195.9   169.8  15.4 Other interest expense 63.1   68.3  (7.6)  196.0   200.5  (2.2)Financing operations interest expense 56.3   52.1  8.1   161.4   150.0  7.6 Income tax expense 98.1   63.6  54.2   228.4   230.9  (1.1)Depreciation and amortization 71.6   65.5  9.3   212.3   194.6  9.1 EBITDA$652.3  $525.9  24.0% $1,650.6  $1,633.8  1.0%            Other adjustments:           Less: flooring interest expense$(70.3) $(57.8) 21.6  $(195.9) $(169.8) 15.4 Less: financing operations interest expense (56.3)  (52.1) 8.1   (161.4)  (150.0) 7.6 Less: used vehicle line of credit interest —   (3.7) (100.0)  (1.5)  (11.2) (86.6)Add: acquisition expenses —   15.9  NM  0.7   16.1  NMAdd: (gain) loss on disposal of stores 5.8   (15.4) NM  (9.2)  (17.7) NMAdd: investment (gain) loss (88.8)  22.7  NM  (43.7)  (4.1) NMAdd: insurance reserves 0.8   2.5  NM  3.2   5.4  NMAdd: contract buyouts —   —  NM  20.3   —  NMAdjusted EBITDA$443.5  $438.0  1.3% $1,263.1  $1,302.5  (3.0)% NM - not meaningful

 As of % September 30, IncreaseNet Debt to Adjusted EBITDA 2026   2025  (Decrease)Floor plan notes payable$6,566.8  $4,869.0  34.9%Used and service loaner vehicle inventory financing facility 3.5   1,020.8  (99.7)Revolving lines of credit 1,736.6   1,310.6  32.5 Warehouse facilities 1,743.5   1,252.0  39.3 Non-recourse notes payable 2,765.7   2,245.6  23.2 4.625% Senior notes due 2027 400.0   400.0  — 3.875% Senior notes due 2029 800.0   800.0  — 5.500% Senior notes due 2030 600.0   600.0  — 4.375% Senior notes due 2031 550.0   550.0  — Real estate mortgages, finance lease obligations, and other debt 1,114.6   1,117.3  (0.2)Unamortized debt issuance costs (24.4)  (26.7) (8.6)Total debt$16,256.3  $14,138.5  15.0%      Less: Inventory related debt$(6,570.3) $(5,889.8) 11.6%Less: Financing operations related debt (4,509.2)  (3,497.6) 28.9 Less: Unrestricted cash and cash equivalents (108.1)  (206.5) (47.7)Less: Marketable securities (76.1)  (54.9) 38.6 Less: Availability on used vehicle and service loaner financing facilities (0.4)  (18.8) (97.9)Net Debt$4,992.2  $4,470.9  11.7%      TTM Adjusted EBITDA$1,627.2  $1,701.9  (4.4)%      Net debt to Adjusted EBITDA3.07        x 2.63        x   NM - not meaningful

The market expects Lithia Motors (LAD - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis auto dealership chain is expected to post quarterly earnings of $9.73 per share in its upcoming report, which represents a year-over-year change of +2.4%.

Revenues are expected to be $9.69 billion, up 0.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 3.44% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Lithia Motors?For Lithia Motors, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.56%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Lithia Motors will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Lithia Motors would post earnings of $8.67 per share when it actually produced earnings of $10.03, delivering a surprise of +15.69%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Lithia Motors doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Lithia Motors (LAD - Free Report) . LAD is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Investors should also note that LAD holds a PEG ratio of 0.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LAD's PEG compares to its industry's average PEG of 0.74. Over the past 52 weeks, LAD's PEG has been as high as 5.87 and as low as 0.25, with a median of 0.49.

Another notable valuation metric for LAD is its P/B ratio of 1.22. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.80. Over the past year, LAD's P/B has been as high as 1.58 and as low as 1.04, with a median of 1.26.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LAD has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.19.

Finally, investors will want to recognize that LAD has a P/CF ratio of 6.76. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.31. Over the past 52 weeks, LAD's P/CF has been as high as 9.19 and as low as 5.79, with a median of 7.06.

These are just a handful of the figures considered in Lithia Motors's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LAD is an impressive value stock right now.

MEDFORD, Ore., Sept. 29, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD) today announced its third quarter 2026 results will be released before the market opens on Wednesday, October 21, 2026. A conference call to discuss the earnings results is scheduled for the same day at 10:00 a.m. Eastern Time.

How to Participate

The conference call may be accessed by telephone at (877) 407-8029. To listen live on our website, or for replay, visit investors.lithiadriveway.com and click on quarterly earnings.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer making Auto Done Easy by providing simple, transparent, and convenient experiences throughout the ownership lifecycle. LAD helps customers take care of any vehicle need through a comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. Celebrating 80 years in business in 2026, LAD consistently delivers profitable growth in a massive and unconsolidated industry. Its highly diversified and competitively differentiated design provides LAD with the flexibility and scale to pursue its vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

The 80th Celebration
https://www.lithiadriveway.com/80-years

Connect with Us!
All Cars: https://www.lithia.com
Driveway.com (Buy, sell, trade, or finance entirely online): https://www.driveway.com
GreenCars (All things sustainable vehicles): https://www.greencars.com
DFC (Auto Financing): https://www.drivewayfinancecorp.com
Investor Relations: https://investors.lithiadriveway.com/
Careers: https://www.lithiacareers.com
Lithia & Driveway on Instagram
https://www.instagram.com/lithiamotors/?hl=en
https://www.instagram.com/driveway_hq/
Lithia & Driveway on Facebook
https://www.facebook.com/lithiaanddriveway/
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on X
https://x.com/lithiadriveway
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ
Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/
Lithia & Driveway on YouTube
https://www.youtube.com/@LithiaDriveway

Car dealerships don’t get as much attention as car manufacturers, but maybe they should.

Lithia Motors Today

LAD

Lithia Motors

$364.61 -4.09 (-1.11%)

As of 02:07 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$239.78▼

$439.490.77%

12.08

$436.33

Lithia Motors NYSE: LAD has built itself into the largest automotive retailer in the United States, and shareholders recently have been enjoying the ride.

The company, which operates as Lithia & Driveway, just turned in a record quarter; shares are up by one-third in the past three months, and management says growth is just getting started. Analysts generally like the stock, with many recently boosting their targets.

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But after a sharp run higher, investors might be left asking how much of that good news is already priced into the stock.

Autos Deliver Record ResultsFounded 80 years ago, Lithia is the nation’s largest auto dealer by revenue and new vehicle sales. From its beginning in the Pacific Northwest, it currently has 467 stores in the United States, Canada, and the United Kingdom, anchored by its Driveway online marketplace and its own captive lender, Driveway Finance Corporation.

That presence has been seen in the numbers. Second-quarter results, reported July 29, showed revenue coming in at a record $9.79 billion, topping analyst estimates of $9.64 billion.

Adjusted diluted earnings per share (EPS) hit $10.03, up 9% from a year earlier. That was against expectations of roughly $8.73, an increase that management attributed to steady new-vehicle margins, improving used-car profitability, and a leaner cost structure. That rise came even as same-store revenue dipped slightly compared with 2025's tariff-driven buying rush.

Overall, reported net income was up slightly to $261.6 million, and adjusted net income reached $227.6 million, a margin of just 2.3%, a reminder of how thin profit spreads remain in vehicle retailing even for an industry leader. Adjusted EBITDA margin came in at a healthy 4.5%, after new vehicle margins slid to 5.9% from 6.7% last year, but used vehicle margins rose to 6.1%.

Finance Arm Helps Fuel GrowthInterestingly, one of the company’s leading growth engines is not on the sales lot at all. Driveway Finance Corporation, the in-house lending arm, originated a record $884 million of loans during the quarter with a 17.5% penetration rate, and financing income more than doubled to $37 million.

Management has said it wants captive-finance penetration to eventually exceed 20% of vehicle sales, turning one-time transactions into recurring, counter-cyclical income. That ambition, paired with a long-stated goal of pushing selling, general, and administrative (SG&A) expenses below 60% of gross profit, is the backbone of the bull case.

Returning Cash to ShareholdersManagement has also been aggressive about returning cash to shareholders. The board raised the quarterly dividend 23% to 70 cents per share from 57 cents, and the company repurchased $242 million of stock in the quarter, retiring about 3.7% of shares outstanding. A new authorization also expanded its buyback scope by $500 million.

At an annual dividend of $2.80, the yield is less than 1%, signifying that buybacks, not dividends, remain management's preferred lever.

Analysts Are Bullish But Not UnanimousAnalyst sentiment is positive but split. Coverage from 11 Wall Street firms produces a consensus rating of Moderate Buy with an average price target of $436.33, implying upside of about 17%.

Lithia Motors Stock Forecast Today12-Month Stock Price Forecast:
$436.33
19.88% Upside

Moderate Buy
Based on 11 Analyst Ratings

Current Price$363.98High Forecast$500.00Average Forecast$436.33Low Forecast$340.00Lithia Motors Stock Forecast Details

Six analysts rate Lithia a Buy while five currently list it as a Hold. Targets ranging from a high of $500 to a low of $340 show a range of expectations over the next 12 months.

Notably, six analysts have increased their targets since the earnings were announced. UBS downgraded the stock to Neutral from Buy in July, even while lifting its price target to $440, perhaps a signal that even fans of the company are debating how much good news is already priced in.

The stock has indeed gotten pricier recently, climbing about 28% over the past three months, though it’s up only 13% since the start of the year. With recent prices near $373, the stock’s 52-week low came in March, when a month of tariff fears sent it down as low as $239.78. The second quarter earnings, however, had the opposite effect, propelling the stock to its recent high of $439.49 per share.

Risks Remain After the RallyThere are, of course, risks in the business of automotive sales.

Skeptics might look back to the prior quarter, when first-quarter EPS dropped 46% to $4.28 due to several factors. Missing consensus for those three months, the results showed that Lithia's results can swing from one quarter to the next.

Layer on tariff exposure, since much of the inventory sold is made abroad, and the stock's sensitivity to trade policy and consumer credit becomes clear. Further, a brisk acquisition pace, including recent dealership purchases in Oregon, Tennessee and Southern California, adds integration risk to the shortlist of considerations.

Competition is also present despite Lithia’s leadership. The company operates alongside AutoNation NYSE: AN, Penske Automotive NYSE: PAG, Asbury Automotive NYSE: ABG, Group 1 Automotive NYSE: GPI and online disruptor Carvana (NYSE: CVNA), all chasing the same buyers in a business where scale determines who can absorb software and financing investments.

Lithia Still Offers UpsideFor investors, Lithia still looks like a reasonably priced way to own a piece of the American auto retail business. The earnings beat, record financing income, and a rising dividend probably argue for nerve and patience with any stake.

The recent appointment of Scott Cooke, a 25-year Toyota Financial Services veteran, to oversee Driveway Finance might also signal management is doubling down on the lending engine as the next chapter of growth.

But the industry tends to be cyclical, and operating leverage is a cost of doing business. The ride appears smooth, but the economy and interest rates can make any auto trip bumpy.

Should You Invest $1,000 in Lithia Motors Right Now?Before you consider Lithia Motors, you'll want to hear this.

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MEDFORD, Ore., Sept. 08, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD) today announced the acquisition of Rockwall Hyundai in Rockwall, Texas, as part of the company's continued strategic network expansion and brings an estimated $75 million in annualized revenue.

 | Source: Lithia & Driveway

MEDFORD, Ore., Sept. 01, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD) today announced the company is investing $500,000 in more than 200 nonprofit youth and community organizations nationwide through its Lithia4Kids Community Giving Grants, a program that partners with organizations dedicated to educating and strengthening the communities Lithia & Driveway serves. The grants will support a range of local initiatives including schools, children’s hospitals, and youth enrichment. 

“As an extension of the relationships that our local dealerships have built in their communities, the Lithia4Kids Community Giving Grants allow us to make a direct impact on the children in the community,” said Brittany Osterhout, Senior Manager, Corporate Sponsorships, Lithia & Driveway. “We’re proud to support organizations that are creating brighter futures for children and their families through safe spaces to play, learn, and further strengthen their community.” 

Lithia & Driveway received nearly 375 grant applications for 2026, and selected the final recipients based on the program's three guiding pillars: education, advocacy, and youth support. Grant presentations began earlier this year, with Lithia & Driveway team members and local dealerships presenting funding to its nonprofit partners in Southern Oregon, Southern California, Portland, Ore., Spokane, Wash., Lexington, Ky., Norfolk, Va., Corpus Christi, Texas, and Miami, Fla. The remaining grants will be presented throughout the remainder of the year, bringing the total number of local organizations receiving support through Lithia4Kids Community Giving Grants to more than 200. 

“Because of partners like Lithia, we can continue keeping families close while they are experiencing a medical emergency that requires them to be far from home,” said Kaitlin Cole, Development Manager for Ronald McDonald House of Charities of the Inland Northwest.

“With support from Lithia4Kids, girls will explore automotive engineering through hands-on badge experiences that do far more than teach STEM skills,” said Susan Douglas, CEO of Girl Scouts of Kentucky’s Wilderness Road Council. “They will discover that they are capable of solving complex problems, working as a team, and imagining themselves in careers they may never have considered.”

Grant submissions for next year will be open from November 1-30, 2026, and can be submitted at https://www.lithia4kids.com/submission.  

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer making Auto Done Easy by providing simple, transparent, and convenient experiences throughout the ownership lifecycle. LAD helps customers take care of any vehicle need through a comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. Celebrating 80 years in business in 2026, LAD consistently delivers profitable growth in a massive and unconsolidated industry. Its highly diversified and competitively differentiated design provides LAD with the flexibility and scale to pursue its vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

The 80th Celebration
https://www.lithiadriveway.com/80-years

Connect with Us!
All Cars: https://www.lithia.com
Driveway.com (Buy, sell, trade, or finance entirely online): https://www.driveway.com
GreenCars (All things sustainable vehicles): https://www.greencars.com
DFC (Auto Financing): https://www.drivewayfinancecorp.com
Investor Relations: https://investors.lithiadriveway.com/
Careers: https://www.lithiacareers.com
Lithia & Driveway on Instagram
https://www.instagram.com/lithiamotors/?hl=en
https://www.instagram.com/driveway_hq/
Lithia & Driveway on Facebook
https://www.facebook.com/lithiaanddriveway/
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on X
https://x.com/lithiadriveway
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ
Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/
Lithia & Driveway on YouTube
https://www.youtube.com/@LithiaDriveway

Media Contact

[email protected]

Carvana is leaving CarMax and Lithia Motors in the dust today, but the reason has nothing to do with used cars and everything to do with where traders are parking their risk appetite right now.

Risk appetite is doing the driving in auto retail this Tuesday, and Carvana (NYSE:CVNA | CVNA Price Prediction) is catching most of the lift. The move fits the profile of a high-beta bounce tracking the broader risk bid, with technology firm and traditional retail sold.

Carvana stock is up 5% to $76.15 midday, on pace for one of its stronger sessions of the month. The stock carries a beta of 3.488, which explains why it is outpacing the group by a wide margin on a day when broader risk assets are firm.

Also moving higher, CarMax (NYSE:KMX) stock is up 2% to $63.88, a tamer move than Carvana despite CarMax’s superior year-to-date standing. Meanwhile, Lithia Motors (NYSE:LAD) stock is climbing 1% to $372.31, participating in the bid but with the smallest step of the three.

High-Beta Bounce Tracks the Risk Bid There’s no verified Carvana company announcement behind the move. The action is telling a more nuanced story: the SPDR S&P Retail ETF (NYSEARCA:XRT) is down 1% to $87.69, while the Invesco QQQ Trust (NASDAQ:QQQ) is up 0.5% to $709.48. That’s rotation into risk, and it needn’t be construed as a retail-sector verdict.

Carvana’s e-commerce model and volatile trading profile put the stock closer to the high-beta technology cohort than to the franchised dealer group. On sessions when large-cap technology leans risk-on, Carvana stock tends to lead the used-car cluster by multiples. Today’s spread between the stock and its peers illustrates the pattern cleanly.

Peers Move, Carvana Runs CarMax stock and Lithia Motors stock are participating in the day’s bid, but the size of their moves signals sector participation. That’s an indicator of a high-beta bounce. Everyone is green, and the volatility name is doing the heavy lifting.

None of the used-car and franchised dealer names is running like Carvana stock is today. As it turns out, CVNA stock is high-beta, so big price moves ought to be expected.

Same-Day Scorecard Inverts the Year The day flips the year. Through Monday’s close, Carvana stock was down 14% year to date, the group’s laggard. CarMax stock was up 63% year to date, the group’s leader, and Lithia Motors stock was up 12% year to date, sitting between them.

Stock Midday Move YTD Through Monday Carvana up 5% to $76.15 down 14% CarMax up 2% to $63.88 up 63% Lithia Motors up 1% to $372.31 up 12% That inversion at Carvana, CarMax, and Lithia Motors, with the laggard leading and the leader trailing on the day, is the fingerprint of beta chasing risk appetite. It is what a high-beta bounce looks like on the scorecard.

What to Keep an Eye On If the QQQ bid holds and XRT continues to slip, Carvana stock can keep leading the used-car cluster through the afternoon, with the risk trade in the driver’s seat. Should that bid fade, the same beta that lifted the stock can carry it lower just as fast.

Traders can watch for whether Carvana holds its midday gain into the close and whether CarMax stock and Lithia Motors stock stretch beyond their current pace. Investors should consider keeping their position sizes modest in a name with a beta above 3, where the risk appetite lifting the stock today can reverse in a hurry (we wrote a free playbook on speculating with just 5% of a portfolio, with the sizing and exit rules that keep a high-beta name from doing real damage, here).

Contact [email protected] for any questions or corrections.

MEDFORD, Ore., Aug. 18, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD) today announced it has been named to the Fortune Global 500 for the second consecutive year, advancing to No. 426, up eight positions from No. 434 last year. The annual ranking recognizes the world's largest companies by revenue and reflects Lithia & Driveway's continued execution of its growth strategy and expanding automotive retail ecosystem.

In 2025, Lithia & Driveway generated $38.1 billion in revenue, a 4.2% increase year over year, supported by more than 30,800 team members serving customers across North America and the United Kingdom.

"Our continued recognition on the Fortune Global 500 reflects the strength of our global ecosystem and the dedication of our more than 30,000 team members," said Bryan DeBoer, President and CEO. “The scale we've achieved enables us to better serve customers, support our partners, and invest in the innovations that will shape the future of automotive retail."

Lithia & Driveway continues to strengthen its position as a global automotive retailer through its omnichannel ecosystem, integrating vehicle sales, financing, service, and digital retail capabilities across North America and the United Kingdom.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer making Auto Done Easy by providing simple, transparent, and convenient experiences throughout the ownership lifecycle. LAD helps customers take care of any vehicle need through a comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. Celebrating 80 years in business in 2026, LAD consistently delivers profitable growth in a massive and unconsolidated industry. Its highly diversified and competitively differentiated design provides LAD with the flexibility and scale to pursue its vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

The 80th Celebration
https://www.lithiadriveway.com/80-years

Connect with Us!
All Cars: https://www.lithia.com
Driveway.com (Buy, sell, trade, or finance entirely online): https://www.driveway.com
GreenCars (All things sustainable vehicles): https://www.greencars.com
DFC (Auto Financing): https://www.drivewayfinancecorp.com
Investor Relations: https://investors.lithiadriveway.com/
Careers: https://www.lithiacareers.com
Lithia & Driveway on Instagram
https://www.instagram.com/lithiamotors/?hl=en
https://www.instagram.com/driveway_hq/
Lithia & Driveway on Facebook
https://www.facebook.com/lithiaanddriveway/
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on X
https://x.com/lithiadriveway
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ
Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/
Lithia & Driveway on YouTube
https://www.youtube.com/@LithiaDriveway

Media Contact
[email protected]

Key Takeaways Lithia Motors beat Q2 earnings and revenue estimates on stronger used margins and aftersales growth.LAD posted record Financing Operations income as DFC originations reached $884 million.LAD raised its dividend 23%, repurchased shares and added five stores through acquisitions. Lithia Motors (LAD - Free Report) posted second-quarter 2026 adjusted earnings of $10.03 per share, which increased 9% from $9.20 a year ago. The bottom line beat the Zacks Consensus Estimate of $8.67 by 15.7%.

Quarterly revenues increased 2.2% year over year to $9.79 billion and topped the consensus estimate of $9.64 billion by 1.6%. Improved used-vehicle profitability, aftersales growth and record Financing Operations income supported the results. Driveway Finance Corporation generated record originations of $884 million.

LAD’s Revenue Growth Spans Core Business LinesNew-vehicle revenues rose 2.7% year over year to $4,829.2 million, while used-vehicle revenues increased 1.4% to $3,528.3 million. Aftersales revenues advanced 3.9% to $1,067.4 million.

Finance and insurance revenues declined 2% to $366.4 million. Same-store new-vehicle revenues fell 1.5%, while same-store used-vehicle revenues decreased 2.2%, showing that acquisitions contributed to the consolidated growth in both categories.

Lithia’s Used Profitability Improves Despite Lower VolumeNew-vehicle unit sales increased 2.7% to 104,089 units. Used retail unit sales declined 2.7% to 106,114 units, but the used retail average selling price rose 4.3% to $29,593.

Used-vehicle gross profit increased 4.2% to $214 million. Used retail gross profit per unit climbed 5.4% to $2,014, and the used-vehicle gross margin expanded 20 basis points to 6.1%. By contrast, new-vehicle gross profit per unit fell 11.8% to $2,728 as the new-vehicle margin contracted 80 basis points to 5.9%.

LAD’s Aftersales Business Supports the Profit MixAftersales gross profit increased 6.8% year over year to $633 million. Its gross margin expanded 160 basis points to 59.3%, reinforcing the importance of recurring service and repair activity to overall profitability.

Aftersales accounted for 42.2% of total gross profit, up from 39.9% a year earlier. Total gross profit increased 0.8% to $1,497.4 million, although the consolidated gross margin narrowed 20 basis points to 15.3%.

Lithia’s Cost Control Lifts Operating IncomeSelling, general and administrative expenses were unchanged year over year at $1,014.7 million. Lower personnel and other costs offset higher advertising, rent and facility expenses.

Reported SG&A as a percentage of gross profit improved 50 basis points to 67.8%. Income from operations increased 5.4% to $448.3 million, while depreciation and amortization rose 8.7% to $70.9 million. Floor plan interest expense increased 26.7% to $69.7 million, partly tempering the operating improvement.

LAD’s Financing Operations Reach Record IncomeFinancing Operations income surged 81.6% to $36.5 million. Interest and fee income increased to $116.4 million from $98.8 million, while the total interest margin expanded to 4.8% from 4.5%.

DFC’s penetration rate was 17.5%, and the average FICO score on originated loans was 749. Managed finance receivables reached nearly $5.3 billion, up 23% year over year, supporting a larger stream of interest income. More than 99% of the portfolio was less than 60 days past due.

Lithia’s Balance Sheet Reflects Finance GrowthAs of June 30, 2026, cash, restricted cash and cash equivalents totaled $363.9 million, up from $341.8 million as of Dec. 31, 2025. Inventories increased to $6,516.8 million from $6,119.6 million at year-end 2025, while total floor plan debt rose to $6,387.4 million from $5,008.9 million.

For the first six months of 2026, net cash used in operating activities was $174.1 million, reflecting increases in inventories and finance receivables. Capital expenditures totaled $153.4 million, and cash paid for acquisitions was $221.7 million. Available liquidity was approximately $1.3 billion.

LAD Keeps Capital Returns and Acquisitions ActiveDuring the quarter, LAD repurchased roughly 854,000 shares at a weighted average price of $284, representing $242 million of share repurchases. Approximately $620 million remained under the authorization at quarter-end.

The board increased the quarterly dividend 23% to 70 cents per share. Lithia also acquired five stores expected to generate $340 million in annualized revenues and divested three stores representing $120 million in annualized revenues.

LAD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Releases From Auto SpaceGeneral Motors Company (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.

Tesla, Inc. (TSLA - Free Report) reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.

Genuine Parts (GPC - Free Report) reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.

These 4 Mid-Caps Just Announced Big Buyback PlansLithia Motors NYSE: LAD reported record second-quarter revenue of $9.8 billion and adjusted diluted earnings per share of $10.03, up 9% from a year earlier, as used-vehicle profitability, after-sales margins and Driveway Finance Corporation income supported results in what management characterized as a dynamic market environment.

President and Chief Executive Officer Bryan DeBoer said the company’s diversified operating model contributed across its businesses during the quarter. Same-store revenue declined 1.6% and total gross profit fell 2.7% against what he described as the company’s toughest comparison of the year, following an exceptionally strong second quarter of 2025. However, total vehicle gross profit per unit rose to $4,119, an increase of nearly $200 from the first quarter.

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Used Vehicles and After-Sales Support Profitability Ladder Corporation: Climbing Higher And Paying 9% Yield Used-vehicle gross profit increased 1.2% year over year, helped by a $339 sequential increase in used-vehicle gross profit per unit to $2,019. DeBoer attributed the improvement in part to the company’s dynamic-pricing efforts and said Lithia was working to balance sales volume and margins.

Management said it expects used-vehicle volumes to range from flat to up mid-single digits during the second half, with stores targeting 3% to 5% growth. DeBoer noted that certified pre-owned vehicles accounted for more than 40% of the company’s used-vehicle sales mix during the quarter. He also identified older vehicles as an opportunity, saying vehicles more than nine years old represent 63% of U.S. used-vehicle sales, while only 17% of Lithia’s mix falls in that category.

3 Undervalued Consumer Stocks to Stock Up OnNew-vehicle revenue declined 1.5% as unit sales fell 2.2% on a same-store basis. New-vehicle gross profit per unit was $2,718, essentially flat from the first quarter and marking the third straight quarter of stability, according to DeBoer. Imports posted 5% growth, while domestic and luxury sales declined 7% and 4%, respectively.

After-sales remained the company’s largest gross-profit contributor, accounting for 42.2% of gross profit. After-sales gross profit increased 3.1% on revenue growth of 1%, while margins expanded 120 basis points to 59.2%. Customer-pay gross profit grew 2.6% and warranty gross profit rose 5.4%.

DeBoer said the margin gains reflected a greater labor mix as vehicle propulsion systems diversify, along with longer warranty periods. He added that electrified vehicles represented nearly 55% of Lithia’s new-vehicle sales in the quarter, including hybrids that accounted for 46.5% of total new-vehicle sales.

Cost Actions and Pinewood.AI Rollout Adjusted selling, general and administrative expense as a percentage of gross profit was 68.6%, an improvement of 290 basis points from the first quarter. Chief Financial Officer Tina Miller said same-store SG&A dollars declined year over year, while personnel expense, the company’s largest cost category, improved by 30 basis points as a percentage of gross profit.

DeBoer said the improvement reflected structural cost changes rather than one-time cuts. Those actions include combining roles, extending leaders across multiple locations and departments, consolidating back-office functions, automating work and renegotiating vendor contracts.

North American SG&A was 66.2%, and DeBoer said June marked the company’s first month in which SG&A declined year over year, improving by nearly 60 basis points. Lithia continues to target SG&A below 60% of gross profit.

In the United Kingdom, gross profit rose 12% and adjusted pretax income increased 78%. SG&A as a percentage of gross profit improved 200 basis points, with about half of that improvement driven by Pinewood.AI solutions, DeBoer said. Used-vehicle gross profit in the U.K. rose nearly 33%, while new-vehicle units increased 16%.

The company plans to begin rolling out Pinewood.AI in North America later this year. DeBoer said the technology and related vendor changes could reduce overall technology-stack costs by 20% to 50%, although the transition will involve a period of redundant systems. He said the company does not expect material operational disruption, citing its experience implementing the platform across 150 U.K. stores.

Management previously estimated that Pinewood.AI could save 447,000 annualized hours in the U.K., equivalent to roughly $10 million to $11 million. DeBoer said the company expects to realize at least half of those hours by year-end and sees a potentially larger opportunity in North America because its expense base there is substantially larger.

Driveway Finance Expands Earnings Base Driveway Finance Corporation, Lithia’s captive financing operation, reported financing-operations income of $37 million, more than doubling its profitability from the prior year. Record originations totaled $884 million, while net interest margin expanded 20 basis points to 4.8%.

Managed receivables surpassed $5 billion, and North American financing penetration reached 18%, moving toward the company’s long-term target of at least 20%. Miller said average origination FICO scores were 748 and front-end loan-to-value ratios held at 96%.

Senior Vice President of Driveway Finance Corporation Chuck Lietz said provisioning needs declined as credit performance remained strong. He cited improvements in 30-plus-day delinquencies across credit categories, while noting that a small adjustment to provisions during the quarter was immaterial. Lietz said DFC expects to maintain similar profitability in the second half, though seasonality could affect quarterly results.

Cash Flow, Buybacks and Acquisitions Adjusted EBITDA totaled $445 million, down 2% year over year. Adjusted cash flow from operations was $228 million, up 76% from the prior year. For the first half, adjusted cash flow from operations reached $609 million after accounting for a one-time used-vehicle floor-plan benefit in the first quarter.

Lithia repurchased $242 million of stock during the quarter at an average price of $284 per share, retiring about 4% of shares outstanding. Its share count was 17% lower than a year earlier. The company also raised its quarterly dividend 23% to $0.70 per share, and said it returned more than $560 million to shareholders through repurchases and dividends during the first half.

Management said it acquired businesses representing $765 million in annual revenue during the first half and divested $120 million of underperforming revenue. DeBoer said the company expects to maintain a balanced capital-allocation approach, potentially directing roughly one-third of capital toward buybacks, one-third toward acquisitions, and the remainder toward dividends and internal investment.

The company continues to target acquisition prices of 15% to 30% of revenue, or three to six times normalized EBITDA. DeBoer reiterated Lithia’s longer-term objective of generating $2 in earnings per share for every $1 billion of revenue.

About Lithia Motors (NYSE:LAD)Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company's core business activities include vehicle sales, financing, insurance, parts and service.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Lithia Motors Right Now?Before you consider Lithia Motors, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Lithia Motors wasn't on the list.

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Lithia Motors, Inc. (LAD) Q2 2026 Earnings Call Transcript

Lithia Motors (LAD - Free Report) came out with quarterly earnings of $10.03 per share, beating the Zacks Consensus Estimate of $8.67 per share. This compares to earnings of $10.24 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +15.69%. A quarter ago, it was expected that this auto dealership chain would post earnings of $7.06 per share when it actually produced earnings of $7.34, delivering a surprise of +3.97%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Lithia Motors, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $9.79 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.55%. This compares to year-ago revenues of $9.58 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Lithia Motors shares have added about 7.8% since the beginning of the year versus the S&P 500's gain of 8.5%.

What's Next for Lithia Motors?While Lithia Motors has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Lithia Motors was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $9.07 on $9.82 billion in revenues for the coming quarter and $34.19 on $38.38 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, AutoNation (AN - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 31.

This auto retailer is expected to post quarterly earnings of $5.43 per share in its upcoming report, which represents a year-over-year change of -0.6%. The consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level.

AutoNation's revenues are expected to be $6.97 billion, down 0.1% from the year-ago quarter.

Posted by Defense World Staff on Jul 27th, 2026

Caxton Associates LLP purchased a new stake in shares of Lithia Motors, Inc. (NYSE:LAD – Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm purchased 3,340 shares of the company’s stock, valued at approximately $834,000.

A number of other hedge funds also recently modified their holdings of LAD. Inceptionr LLC increased its holdings in Lithia Motors by 90.2% in the first quarter. Inceptionr LLC now owns 2,904 shares of the company’s stock valued at $725,000 after purchasing an additional 1,377 shares during the period. Sei Investments Co. lifted its holdings in Lithia Motors by 48.1% during the 1st quarter. Sei Investments Co. now owns 142,812 shares of the company’s stock worth $35,663,000 after buying an additional 46,391 shares during the period. Cetera Investment Advisers lifted its holdings in Lithia Motors by 12.3% during the 1st quarter. Cetera Investment Advisers now owns 7,429 shares of the company’s stock worth $1,855,000 after buying an additional 813 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Lithia Motors by 3.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,389,870 shares of the company’s stock valued at $347,074,000 after buying an additional 43,087 shares during the last quarter. Finally, Bessemer Group Inc. grew its position in shares of Lithia Motors by 68.0% in the 1st quarter. Bessemer Group Inc. now owns 173 shares of the company’s stock valued at $43,000 after buying an additional 70 shares during the last quarter.

Lithia Motors Stock Performance Shares of LAD stock opened at $341.04 on Monday. The firm has a 50 day moving average of $302.18 and a 200-day moving average of $293.89. The company has a market cap of $7.78 billion, a price-to-earnings ratio of 11.97, a price-to-earnings-growth ratio of 0.80 and a beta of 1.26. The company has a quick ratio of 0.24, a current ratio of 0.99 and a debt-to-equity ratio of 1.41. Lithia Motors, Inc. has a 52 week low of $239.78 and a 52 week high of $360.55.

Lithia Motors (NYSE:LAD – Get Free Report) last released its earnings results on Wednesday, April 29th. The company reported $7.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.06 by $0.28. The company had revenue of $9.27 billion for the quarter, compared to the consensus estimate of $9.22 billion. Lithia Motors had a net margin of 1.88% and a return on equity of 12.49%. Lithia Motors’s quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $7.66 EPS. On average, equities analysts forecast that Lithia Motors, Inc. will post 34.19 earnings per share for the current year.

Lithia Motors announced that its board has approved a stock buyback plan on Tuesday, May 26th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to buy up to 7.9% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Insider Activity In other news, Director Richard J. Bailey, Jr. sold 297 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total transaction of $83,329.29. Following the transaction, the director owned 760 shares of the company’s stock, valued at $213,233.20. This represents a 28.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Shauna Mcintyre sold 245 shares of the firm’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $294.64, for a total value of $72,186.80. Following the completion of the sale, the director owned 1,846 shares of the company’s stock, valued at approximately $543,905.44. This represents a 11.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 782 shares of company stock worth $229,572 in the last quarter. Company insiders own 1.08% of the company’s stock.

Analysts Set New Price Targets A number of equities analysts recently commented on the company. Zacks Research raised Lithia Motors from a “strong sell” rating to a “hold” rating in a research note on Thursday, April 23rd. Bank of America increased their target price on shares of Lithia Motors from $350.00 to $417.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. JPMorgan Chase & Co. raised their price target on shares of Lithia Motors from $320.00 to $325.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Weiss Ratings upgraded shares of Lithia Motors from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 21st. Finally, Wells Fargo & Company increased their price objective on shares of Lithia Motors from $305.00 to $306.00 and gave the stock an “equal weight” rating in a research report on Monday, July 6th. Eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $380.33.

Read Our Latest Analysis on LAD

Lithia Motors Profile (Free Report)

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.

Recommended Stories Five stocks we like better than Lithia Motors RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding LAD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lithia Motors, Inc. (NYSE:LAD – Free Report).

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July 14, 2026 05:30 ET  | Source: Lithia & Driveway

MEDFORD, Ore., July 14, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD) today announced its second quarter 2026 results will be released before the market opens on Wednesday, July 29, 2026. A conference call to discuss the earnings results is scheduled for the same day at 10:00 a.m. Eastern Time.

How to Participate

The conference call may be accessed by telephone at (877) 407-8029. To listen live on our website, or for replay, visit investors.lithiadriveway.com and click on quarterly earnings.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer making Auto Done Easy by providing simple, transparent, and convenient experiences throughout the ownership lifecycle. LAD helps customers take care of any vehicle need through a comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. Celebrating 80 years in business in 2026, LAD consistently delivers profitable growth in a massive and unconsolidated industry. Its highly diversified and competitively differentiated design provides LAD with the flexibility and scale to pursue its vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

The 80th Celebration
https://www.lithiadriveway.com/80-years

Connect with Us!
All Cars: https://www.lithia.com
Driveway.com (Buy, sell, trade, or finance entirely online): https://www.driveway.com
GreenCars (All things sustainable vehicles): https://www.greencars.com
DFC (Auto Financing): https://www.drivewayfinancecorp.com
Investor Relations: https://investors.lithiadriveway.com/
Careers: https://www.lithiacareers.com
Lithia & Driveway on Instagram
https://www.instagram.com/lithiamotors/?hl=en
https://www.instagram.com/driveway_hq/
Lithia & Driveway on Facebook
https://www.facebook.com/lithiaanddriveway/
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on X
https://x.com/lithiadriveway
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ
Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/
Lithia & Driveway on YouTube
https://www.youtube.com/@LithiaDriveway

Media Contact

[email protected]  

The Zacks Auto Retail and Wholesale industry enters the second half of 2026 navigating a complex landscape. New-vehicle demand has demonstrated notable resilience, supported by stable monthly sales volumes and broadening credit access, even as macro headwinds persist. However, sustained inflationary pressures, elevated vehicle prices and high borrowing costs continue to erode consumer purchasing power, disproportionately impacting mainstream and entry-level buyers. With full-year sales forecast at 15.8 million units— below 2025 levels— the industry faces pressure on volumes and margins.

Despite this backdrop, a few retailers like Lithia Motors (LAD - Free Report) and Sonic Automotive (SAH - Free Report) are better positioned to weather the cycle, backed by strategic acquisitions, ongoing digitization efforts and shareholder-friendly capital allocation.

About the Industry The auto retail and wholesale industry plays a key role in how cars, trucks and auto parts reach consumers. Companies in this space operate through dealership networks and retail chains, selling both new and used vehicles, offering repair and maintenance services, and facilitating customer financing. As a consumer-driven industry, its performance is closely tied to broader economic conditions — disposable income levels, interest rates, and consumer confidence all directly influence vehicle purchase decisions. The industry has also undergone meaningful structural change in recent years, with dealers increasingly investing in digital tools and e-commerce capabilities, a shift that continues to reshape how vehicles are bought and sold.

Key Investing Themes Resilient Demand and Stabilizing Sales Pace: Despite a volatile start to 2026 driven by weather disruptions, policy shifts and the Middle East energy shock, new-vehicle demand has proven surprisingly durable. Per Cox Automotive, the SAAR has held near 16.1 million for four consecutive months, including June, reflecting the underlying strength of consumer commitment to vehicle purchases. Strong equity markets and accumulated household wealth are also providing meaningful support, helping insulate demand despite elevated fuel prices and broader macro uncertainty.

Broadening Credit Access Supporting a Wider Buyer Pool: Per Cox Automotive, while average new vehicle loan rates remain elevated, it is a result of a broader mix of consumers now accessing financing, including lower credit tiers that were previously shut out of the market. Lenders have been expanding approval rates, extending loan terms, financing negative equity, and narrowing yield spreads, collectively widening the pool of eligible buyers. This broadening of credit access, even within a high-rate environment, should continue to support transaction volumes that might otherwise have deteriorated more sharply given current affordability pressures.

Eroding Consumer Purchasing Power: A sustained erosion of household purchasing power remains a key structural headwind for auto retail going into the second half of 2026. Per Cox Automotive, consumer price inflation has compounded at nearly 5% annually over the last five years, and personal expenditure growth continues to outpace income growth. The average consumer's budget is under meaningful pressure. Energy costs remain a persistent drag, and unless inflation trends materially improve, discretionary spending on big-ticket purchases like vehicles will continue to face resistance— particularly in mainstream and entry-level segments where financing dependency is highest and budget sensitivity is most acute.

Elevated Vehicle Prices and High Borrowing Costs Suppressing Volume: Average transaction prices for new vehicles sit at approximately $49,220 — nearly 9% above where they would be had pre-COVID price growth trends continued. Layered on top of that, average new auto loan rates stand at 9.6%, having risen sharply from approximately 6.5% a decade ago. Cox Automotive's Vehicle Affordability Index highlights rising income requirements to purchase a new vehicle, with price-sensitive compact and subcompact segment buyers increasingly trading down to used vehicles or exiting the market entirely.

Year-Over-Year Volume Decline Pressuring Revenue Comps: Full-year new-vehicle sales are forecast at 15.8 million units, a 2.9% decline from 2025. While some of this softness reflects last year's outperformance rather than a fundamental demand collapse, negative unit comps create meaningful headwinds for revenue growth and operating leverage across the industry. In a business with high fixed costs at the dealership level, even modest volume declines can compress margins and pressure earnings comparisons through the remainder of 2026.

Zacks Industry Rank Isn't Encouraging The Zacks Auto Retail & Wholesale industry is part of the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #167, which places it in the bottom 32% of nearly 245 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates weak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are losing confidence about this group’s earnings growth potential. Over the past year, the industry's earnings estimate for 2026 has declined roughly 8%.

We will present a couple of stocks that you might consider adding to your watchlist. But before that, let’s discuss the industry’s recent stock market performance and valuation picture.

Industry Lags Sector and S&P 500 The Zacks Auto Retail & Whole Sales industry has lost roughly 4%, underperforming the Zacks S&P 500 composite as well as the Auto, Tires and Truck sector over the past year, which grew 26% and 16%, respectively.  

One-Year Price Performance

Industry's Current Valuation Since automotive companies are debt-laden, it makes sense to value them based on the enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio.

On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 9.1X compared with the S&P 500’s 18.23X and the sector’s trailing 12-month EV/EBITDA of 26.76X.

Over the past five years, the industry has traded as high as 9.45X, as low as 4.78X and at a median of 7.21X, as the chart below shows.

EV/EBITDA Ratio (Past 5 Years)

2 Stocks Worth Considering Sonic has grown into one of the most diversified franchised auto retailers in the United States. The 2021 acquisition of RFJ Auto Partners cemented its position among the top five U.S. dealership groups, while its more recent acquisition of four Jaguar and Land Rover dealerships in California made it the largest U.S. retailer of those premium brands— adding meaningful exposure to the higher-end segment that has shown relative resilience in 2026.

Beyond traditional auto retail, Sonic is expanding into powersports through its Sonic Powersports unit, now operating 20 rooftops across 46 franchises following its Harley-Davidson dealership acquisitions, positioning it among the top five U.S. powersports groups. Its EchoPark digital platform further supports an omnichannel retail strategy aligned with evolving consumer preferences. Notably, Sonic has raised its dividend eight times over the last five years, underscoring consistent shareholder returns.

Sonic currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2026 and 2027 sales implies year-over-year growth of 5% and 8%, respectively. The consensus mark for Sonic’s current and next year EPS has moved north by 13 cents and 10 cents, respectively, over the past 30 days.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price & Consensus: SAH

Lithia stands out as one of the most acquisitive and strategically disciplined auto retailers in the United States. The company added $2.4 billion in annualized revenues through acquisitions in 2025 and continues to target $2-$4 billion in annual acquired revenues in 2026, with a deliberate focus on large, high-performing stores in the high-profitability Southeast and South-Central markets.

Beyond physical expansion, Lithia's digital platforms— Driveway and GreenCars— enable customers to buy, sell and service vehicles online, supporting an omnichannel strategy aligned with shifting consumer preferences. Its North American JV sale to Pinewood AI has further streamlined operations, unified its technology platform and accelerated delivery capabilities. Lithia also maintains a strong shareholder return track record, with a five-year annualized dividend growth rate of 11.56%, reflecting confidence in its long-term earnings trajectory.

Lithia currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for 2026 and 2027 sales implies year-over-year growth of 3% and 17%, respectively. The consensus mark for LAD’s current and next year EPS has moved north by 11 cents and 43 cents, respectively, over the past 30 days.

Price & Consensus: LAD

Lithia Motors, Inc. (NYSE: LAD - Get Free Report) has earned a consensus rating of "Moderate Buy" from the eleven research firms that are presently covering the stock, MarketBeat.com reports. Five equities research analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average twelve-month price

Lithia Motors, an American automotive dealership group, is now a $6 billion (by market cap) car dealership aggregator. LAD increased its dividend for 16 consecutive years, with a 10-year dividend growth rate of 11.1%. Lithia grew its revenue from $8.7 billion in FY 2016 to $37.6 billion in FY 2025, a compound annual growth rate of 17.7%.

Posted by Defense World Staff on Apr 4th, 2026

SG Americas Securities LLC grew its holdings in shares of Lithia Motors, Inc. (NYSE:LAD – Free Report) by 593.9% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 8,445 shares of the company’s stock after purchasing an additional 7,228 shares during the quarter. SG Americas Securities LLC’s holdings in Lithia Motors were worth $2,807,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds also recently made changes to their positions in LAD. Mitsubishi UFJ Trust & Banking Corp bought a new stake in shares of Lithia Motors during the 3rd quarter valued at $1,601,000. Bridges Investment Management Inc. raised its holdings in Lithia Motors by 3.0% in the 3rd quarter. Bridges Investment Management Inc. now owns 263,157 shares of the company’s stock worth $83,158,000 after purchasing an additional 7,558 shares during the period. Abrams Capital Management L.P. lifted its position in Lithia Motors by 1.9% during the third quarter. Abrams Capital Management L.P. now owns 2,490,534 shares of the company’s stock valued at $787,009,000 after purchasing an additional 45,856 shares in the last quarter. Arkadios Wealth Advisors bought a new stake in Lithia Motors during the third quarter valued at about $557,000. Finally, Jupiter Asset Management Ltd. purchased a new stake in Lithia Motors in the third quarter worth about $548,000.

Lithia Motors Price Performance Shares of NYSE:LAD opened at $251.98 on Friday. The firm has a market cap of $5.89 billion, a price-to-earnings ratio of 7.84, a P/E/G ratio of 0.60 and a beta of 1.22. The firm has a fifty day moving average price of $284.03 and a 200 day moving average price of $308.59. Lithia Motors, Inc. has a fifty-two week low of $239.78 and a fifty-two week high of $360.55. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.26 and a current ratio of 1.17.

Lithia Motors (NYSE:LAD – Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The company reported $6.74 EPS for the quarter, missing the consensus estimate of $8.09 by ($1.35). Lithia Motors had a net margin of 2.18% and a return on equity of 12.76%. The company had revenue of $9.20 billion for the quarter, compared to the consensus estimate of $9.19 billion. During the same period last year, the company earned $7.79 EPS. The firm’s revenue for the quarter was up .3% on a year-over-year basis. As a group, sell-side analysts expect that Lithia Motors, Inc. will post 34.45 earnings per share for the current fiscal year.

Lithia Motors Announces Dividend The company also recently declared a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 0.9%. The ex-dividend date was Friday, March 6th. Lithia Motors’s dividend payout ratio (DPR) is currently 6.85%.

Wall Street Analyst Weigh In Several research analysts have recently commented on LAD shares. JPMorgan Chase & Co. downgraded Lithia Motors from an “overweight” rating to a “neutral” rating and set a $335.00 price objective on the stock. in a research note on Friday, February 20th. Wall Street Zen lowered shares of Lithia Motors from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Barclays lowered their price target on shares of Lithia Motors from $390.00 to $380.00 and set an “overweight” rating on the stock in a report on Tuesday, February 17th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Lithia Motors in a research report on Thursday, January 22nd. Finally, Zacks Research cut shares of Lithia Motors from a “hold” rating to a “strong sell” rating in a research note on Wednesday, March 25th. Six research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Lithia Motors presently has an average rating of “Hold” and a consensus target price of $382.33.

Check Out Our Latest Research Report on LAD

About Lithia Motors (Free Report)

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.

Read More Five stocks we like better than Lithia Motors Want to see what other hedge funds are holding LAD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lithia Motors, Inc. (NYSE:LAD – Free Report).

Receive News & Ratings for Lithia Motors Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lithia Motors and related companies with MarketBeat.com's FREE daily email newsletter.

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April 09, 2026 05:30 ET  | Source: Lithia & Driveway

MEDFORD, Ore., April 09, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD) today announced its first quarter 2026 earnings and full year results will be released before the market opens on Wednesday, April 29, 2026. A conference call to discuss the earnings results is scheduled for the same day at 10:00 a.m. Eastern Time.

How to Participate

The conference call may be accessed by telephone at (877) 407-8029. To listen live on our website, or for replay, visit investors.lithiadriveway.com and click on quarterly earnings.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer making Auto Done Easy by providing simple, transparent, and convenient experiences throughout the ownership lifecycle. LAD helps customers take care of any vehicle need through a comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. Celebrating 80 years in business in 2026, LAD consistently delivers profitable growth in a massive and unconsolidated industry. Its highly diversified and competitively differentiated design provides LAD with the flexibility and scale to pursue its vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

The 80th Celebration
https://www.lithiadriveway.com/80-years

Connect with Us!
All Cars: https://www.lithia.com
Driveway.com (Buy, sell, trade, or finance entirely online): https://www.driveway.com
GreenCars (All things sustainable vehicles): https://www.greencars.com
DFC (Auto Financing): https://www.drivewayfinancecorp.com
Investor Relations: https://investors.lithiadriveway.com/
Careers: https://www.lithiacareers.com
Lithia & Driveway on Instagram
https://www.instagram.com/lithiamotors/?hl=en
https://www.instagram.com/driveway_hq/
Lithia & Driveway on Facebook
https://www.facebook.com/lithiaanddriveway/
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on X
https://x.com/lithiadriveway
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ
Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/
Lithia & Driveway on YouTube
https://www.youtube.com/@LithiaDriveway

Media Contact

[email protected] 

Wall Street expects a year-over-year decline in earnings on higher revenues when Lithia Motors (LAD - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on April 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis auto dealership chain is expected to post quarterly earnings of $7.07 per share in its upcoming report, which represents a year-over-year change of -7.7%.

Revenues are expected to be $9.36 billion, up 2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 3.2% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Lithia Motors?For Lithia Motors, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.31%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Lithia Motors will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Lithia Motors would post earnings of $8.09 per share when it actually produced earnings of $6.74, delivering a surprise of -16.69%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Lithia Motors appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAsbury Automotive Group (ABG - Free Report) , another stock in the Zacks Automotive - Retail and Whole Sales industry, is expected to report earnings per share of $5.68 for the quarter ended March 2026. This estimate points to a year-over-year change of -16.7%. Revenues for the quarter are expected to be $4.39 billion, up 5.9% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Asbury Automotive has been revised 2.9% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Asbury Automotive will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Lithia Motors (LAD - Free Report) came out with quarterly earnings of $7.34 per share, beating the Zacks Consensus Estimate of $7.06 per share. This compares to earnings of $7.66 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +3.91%. A quarter ago, it was expected that this auto dealership chain would post earnings of $8.09 per share when it actually produced earnings of $6.74, delivering a surprise of -16.69%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Lithia Motors, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $9.27 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.94%. This compares to year-ago revenues of $9.18 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Lithia Motors shares have lost about 16.6% since the beginning of the year versus the S&P 500's gain of 4.3%.

What's Next for Lithia Motors?While Lithia Motors has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Lithia Motors was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $8.97 on $9.82 billion in revenues for the coming quarter and $34.68 on $38.88 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

AutoNation (AN - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 1.

This auto retailer is expected to post quarterly earnings of $4.71 per share in its upcoming report, which represents a year-over-year change of +0.6%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level.

AutoNation's revenues are expected to be $6.66 billion, down 0.5% from the year-ago quarter.