Automotive retailer Lithia Motors (NYSE: LAD) will be reporting results tomorrow before market hours. Here’s what to look for.
Lithia beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $9.22 billion, up 20.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a narrow beat of analysts’ gross margin estimates.
Is Lithia a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Lithia’s revenue to grow 9.9% year on year to $9.41 billion, slowing from the 22.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.82 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lithia has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Lithia’s peers in the automotive and marine retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CarMax delivered year-on-year revenue growth of 6.7%, meeting analysts’ expectations, and Genuine Parts reported revenues up 1.4%, topping estimates by 0.5%. CarMax traded down 14.7% following the results.
Read our full analysis of CarMax’s results here and Genuine Parts’s results here.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
