Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Lithia Motors (LAD) reported earnings 30 days ago. What's next for the stock?
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Lithia Motors remains a "Buy" due to strong growth, attractive valuation, and continued expansion via acquisitions despite recent share underperformance. LAD reported robust revenue and profit growth, driven by higher vehicle sales and strategic dealership acquisitions, though gross profit per unit declined as industry conditions normalized. Significant leverage from acquisition-driven growth keeps LAD's EV/EBITDA valuation above peers, raising concerns about debt levels versus market cap.
Lithia Motors is rated neutral due to strong aftersales and used vehicle segments, but new vehicle profitability and consumer affordability remain key concerns. Aftersales revenue and gross profit are robust, providing recurring, macro-resistant earnings, while used vehicle demand benefits from consumer 'trade down' behavior. New and used vehicle gross profit per unit are at multi-year lows, with industry-wide headwinds and uncertainty around when the cycle will improve.
Lithia Motors, Inc. (NYSE:LAD ) Q3 2025 Earnings Call October 22, 2025 10:00 AM EDT Company Participants Jardon Jaramillo - Senior Director of Finance & Investor Relations Bryan DeBoer - CEO, President & Director Tina Miller - Senior VP & CFO Charles Lietz - Senior Vice President of Finance Conference Call Participants Ryan Sigdahl - Craig-Hallum Capital Group LLC, Research Division Federico Merendi - BofA Securities, Research Division Michael Ward - Citigroup Inc., Research Division Rajat Gupta - JPMorgan Chase & Co, Research Division Glenn Chin - Seaport Research Partners Christopher Bottiglieri - BNP Paribas Exane, Research Division Jeffrey Lick - Stephens Inc., Research Division Bret Jordan - Jefferies LLC, Research Division Daniela Haigian - Morgan Stanley, Research Division Michael Albanese - The Benchmark Company, LLC, Research Division Mark Jordan - Goldman Sachs Group, Inc., Research Division Colin Langan - Wells Fargo Securities, LLC, Research Division Presentation Operator Greetings, and welcome to the Lithia & Driveway's 2025 Third Quarter Earnings Call. [Operator Instructions] It is my now my pleasure to introduce your host, Jardon Jaramillo.
The headline numbers for Lithia Motors (LAD) give insight into how the company performed in the quarter ended September 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Lithia Motors beat Q3 revenue and EPS estimates, driven by strong used sales and expanding high-margin after-sales growth.
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
Lithia Motors (LAD) reported earnings 30 days ago. What's next for the stock?
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
Lithia Motors offers both growth and value, with strong earnings growth and a depressed share price creating an attractive entry point. Recent Q2 results showed 19.2% net income and 25.4% EPS growth, while ongoing acquisitions and buybacks support future earnings expansion. Valuation models (Peter Lynch and DCF) suggest significant upside, with intrinsic values far above current prices and a price target of $335.79.