Zacks Investment Research | Jul 13, 2017 08:51AM ET
Lithia Motors Inc. (NYSE:LAD) has announced preliminary results for the second quarter, ended Jun 30, 2017.
The company expects net income to be in the range of $51.5-$53 million or $2.05-$2.11 per share in the second quarter. In the prior-year quarter, the company had reported a net income of $51.4 million or $2.01 per share. Also, the adjusted net income for the second quarter is forecast to be in the range of $55.1-$56.6 million or $2.20-$2.26 per share, in contrast to $50.2 million or $1.96 per share, recorded in the year-ago quarter.
Revenues for the second quarter are expected to be within the range of $2,425-$2,475 million in comparison to the prior-year figure of $2,133 million.
Lithia Motors estimates an increase of 2.3-2.6% in the total same store sales. New vehicle sales are expected to rise in the band of 0.5-0.8%, whereas the used vehicle sales are forecast to expand in the range of 3.8-4.1%.
Revenues from service body and parts same store are expected to expand in the band of 6.8-7.1%, whereas same store finance and insurance (F&I) per unit gross profit is estimated in the range of $1,330-$1,355.
As notified earlier, the company is also launching $300 million senior notes due 2025, in a private offering. The company plans to use the proceeds from the offering for capital expenditures, repaying debts and funding new buyouts.
Lithia Motors is gaining from its business expansion through acquisitions and store openings. In May 2017, Lithia Motors had taken over Baierl Auto Group in Pittsburgh, PA. Previously in 2016, the company had acquired a total of 15 stores.
Price Performance
Lithia Motors has outperformed the Zacks categorized Retail/Wholesale Auto/Truck industry in the last three months. During the period, the stock has rallied 21.4% while the industry has witnessed a 4% increase.
Zacks Rank & Key Picks
Lithia Motors currently carries a Zacks Rank #3 (Hold).
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.