Overview

* Lithia Q2 revenue rises 4% yr/yr but missed analyst expectations

* Adjusted EPS for Q2 beats analyst estimates, driven by unrealized gains

* Co repurchased 1.5% of outstanding shares during the quarter

Outlook

* Company well positioned to accelerate growth in second half of 2025

Result Drivers

* AFTERSALES GROWTH - Aftersales gross profit increased 11.5% compared to Q2 2024, contributing to overall revenue growth

* FINANCING PROFITABILITY - Financing operations generated $20 mln in profit, a 179% increase year-over-year, boosting earnings

* OMNICHANNEL ECOSYSTEM - Scalability of omnichannel ecosystem, including Driveway and recent acquisitions, drove market-share gains and earnings growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $9.58 $9.69

Revenue bln bln (12

Analysts

)

Q2 Beat $10.24 $9.24

Adjusted (12

EPS Analysts

)

Q2 EPS $9.87

Q2 $268 mln

Adjusted

Net

Income

Q2 Net $258.20

Income mln

Q2 $0.55

Dividend

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

* Wall Street's median 12-month price target for Lithia Motors Inc ( LAD ) is $400.00, about 23.2% above its July 28 closing price of $307.07

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)