Lithia Motors Reports Strong Q2 Earnings with Record Financing Results
Lithia Motors (NYSE:LAD) reported second-quarter earnings that significantly exceeded Wall Street expectations, leading to a nearly 5% rise in pre-market trading. The company's adjusted earnings per share reached $10.03 against an expected $8.81, while revenue hit $9.8 billion—up from the previous year and ahead of forecasts. A key driver was its financing business, which saw record income growth of 82% to $37 million. The company also improved profitability in used vehicle sales and aftersales services, with gross profit per unit increasing by 20%. Lithia returned capital to shareholders through a share buyback program totaling $242 million and raised its quarterly dividend by 23%, now at $0.70 per share. Operational efficiency improved as well, with SG&A expenses declining significantly relative to gross profits.
Tickers: $LAD
Topics: automotive retail dividend increase finance operations share buybacks