Lithia Motors (NYSE:LAD) Issues Quarterly Earnings Results

Posted by on Oct 22nd, 2026

Lithia Motors (NYSE:LAD – Get Free Report) posted its earnings results on Wednesday. The company reported $10.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $9.70 by $0.64, Zacks reports. The company had revenue of $9.95 billion for the quarter, compared to analyst estimates of $9.75 billion. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%. The firm’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $9.50 earnings per share.

Here are the key takeaways from Lithia Motors’ conference call:

  • Adjusted EPS rose 9% to $10.34 on revenue just under $10 billion, despite a mixed retail environment and a 1.4% same-store revenue decline.
  • Used-vehicle gross profit increased 9.3% year over year, with used GPU up 13% to $1,993, while after-sales gross profit grew 2.4% and margins expanded to 59.5%.
  • Driveway Finance delivered record finance-operations income of $32 million, up nearly 70%, supported by 22% growth in managed receivables, improving credit metrics, and North American penetration of 18.3%.
  • Strong cash generation supported $85 million of share repurchases, more than $627 million returned to shareholders year to date, and the acquisition of four Memphis Hyundai and Kia stores expected to add $250 million in annualized revenue.
  • New-vehicle revenue declined 2.6% and F&I per unit fell 4.7% amid affordability pressure; management also cautioned that the fourth quarter remains seasonally challenging, although it expects easier comparisons and continued used-GPU momentum.

Lithia Motors Trading Down 9.8%

Shares of Lithia Motors stock opened at $270.21 on Thursday. The company has a current ratio of 1.00, a quick ratio of 0.21 and a debt-to-equity ratio of 1.46. Lithia Motors has a 12-month low of $239.78 and a 12-month high of $439.49. The firm has a market capitalization of $5.94 billion, a price-to-earnings ratio of 8.96, a PEG ratio of 0.69 and a beta of 1.27. The firm’s 50 day simple moving average is $333.62 and its two-hundred day simple moving average is $315.12.

Lithia Motors Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 20th. Shareholders of record on Friday, November 6th will be paid a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Friday, November 6th. This is a positive change from Lithia Motors’s previous quarterly dividend of $0.70. Lithia Motors’s dividend payout ratio (DPR) is currently 9.29%.

Insider Activity

In other news, Director Stacy Congdon sold 75 shares of Lithia Motors stock in a transaction on Friday, September 11th. The shares were sold at an average price of $370.73, for a total transaction of $27,804.75. Following the completion of the sale, the director directly owned 2,300 shares in the company, valued at approximately $852,679. The trade was a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.08% of the company’s stock.

Key Headlines Impacting Lithia Motors

Here are the key news stories impacting Lithia Motors this week:

  • Positive Sentiment: Q3 earnings and revenue exceeded expectations. Adjusted earnings were $10.34 per share versus the $9.70 consensus estimate, while revenue reached approximately $9.95 billion compared with expectations of $9.75 billion. Revenue increased 2.8% year over year, and adjusted EPS rose 9%. Lithia Motors Tops Q3 Earnings and Revenue Estimates
  • Positive Sentiment: Core operating metrics improved. Used retail gross profit per unit increased 11% year over year, aftersales gross margin rose to 59.5% on a same-store basis, and Driveway Finance income jumped 69% to $32.3 million. Record finance originations of $937 million also indicate solid demand for the company’s financing operations. Lithia Three Key Takeaways
  • Positive Sentiment: Capital returns increased. Lithia repurchased $85 million of stock during the quarter and announced a 7.1% dividend increase, raising the quarterly payout to $0.75 per share, or $3.00 annualized. Lithia Third Quarter Results
  • Neutral Sentiment: Management’s earnings call provides additional detail on sales trends, financing, margins, and the company’s outlook for investors. Lithia Motors Q3 Earnings Call Transcript
  • Negative Sentiment: Technical and balance-sheet concerns remain. LAD trades below its 50-day and 200-day moving averages, while its debt-to-equity ratio is 1.46 and quick ratio is 0.21. These factors may limit the market’s reaction to the earnings beat despite the improved results.

Analyst Upgrades and Downgrades

LAD has been the subject of several recent analyst reports. Benchmark raised their target price on shares of Lithia Motors from $400.00 to $475.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Morgan Stanley reduced their price target on Lithia Motors from $358.00 to $310.00 and set an “equal weight” rating on the stock in a research report on Monday, October 5th. Weiss Ratings lowered Lithia Motors from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, October 14th. Wall Street Zen upgraded Lithia Motors from a “sell” rating to a “hold” rating in a report on Saturday, August 1st. Finally, JPMorgan Chase & Co. lowered their price objective on Lithia Motors from $340.00 to $320.00 and set a “neutral” rating for the company in a research report on Tuesday, October 6th. Six analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $402.60.

Read Our Latest Stock Report on Lithia Motors

Lithia Motors Company Profile

(Get Free Report)

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.

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Earnings History for Lithia Motors (NYSE:LAD)

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