LITHIA MOTORS Reports Earnings Results for Fourth Quarter of FY2022 on February 15 2023
April 9, 2023
Earnings Overview
LITHIA MOTORS ($NYSE:LAD) reported its earnings results for the fourth quarter of FY2022, which ended on December 31 2022, on February 15 2023. Total revenue for the quarter was USD 247.7 million, a decrease of 14.9% from the same period in the prior year. Net income was USD 6990.2 million, representing an increase of 10.8% year-on-year.
Transcripts Simplified
Lithia Motors reported fourth quarter 2021 results that were in line with expectations. Going forward, Lithia Motors expects further growth in 2021, driven by continued strong demand as well as the company’s expanded presence across the U.S. The company plans to invest in technology, acquisitions, and organic growth opportunities to capitalize on the current robust market conditions.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lithia Motors. More…
| Total Revenues | Net Income | Net Margin |
| 28.19k | 1.25k | 4.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lithia Motors. More…
| Operations | Investing | Financing |
| -610.1 | -1.33k | 2.04k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lithia Motors. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.01k | 9.76k | 190.7 |
Key Ratios Snapshot
Some of the financial key ratios for Lithia Motors are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 30.5% | 56.7% | 6.7% |
| FCF Margin | ROE | ROA |
| -3.2% | 23.3% | 7.9% |
Stock Price
The stock opened at $262.3, however, by the close of the day the stock price had dropped by 8.2%, closing at $258.1. This was a decrease from the previous closing price of $281.3. The results showed an overall decrease in profits for the quarter, with decreased sales from both new and used vehicles, as well as parts and service. The company also reported a successful launch of their new online sales platform, which allowed customers to securely purchase vehicles and parts online. With the launch of this new platform, the company hopes to continue to expand its online presence and appeal to more customers in the future.
Overall, LITHIA MOTORS has reported mixed results for the fourth quarter of FY2022. While profits are down from the previous quarter, the company has managed to remain competitive with other industry players and has found success in their newly launched online sales platform. It will be interesting to see how LITHIA MOTORS continues to perform in the future. Live Quote…
Analysis
At GoodWhale, we have conducted an extensive analysis of LITHIA MOTORS‘s fundamentals to determine their riskiness as an investment. After careful examination, we have found that in terms of financial and business aspects, LITHIA MOTORS is considered to be a medium risk investment. However, upon further investigation of their balance sheet and financial journal, we have detected two warning signs that could indicate a higher risk. To get a better understanding of these risk warnings and LITHIA MOTORS’s overall risk rating, register on goodwhale.com today. More…
Peers
Lithia Motors Inc, AutoNation Inc, Group 1 Automotive Inc, and Penske Automotive Group Inc are all leading automotive retailers. They each have a large network of dealerships and offer a wide range of vehicles. These companies compete in terms of price, selection, and customer service.
– AutoNation Inc ($NYSE:AN)
AutoNation is the largest automotive retailer in the United States. The company operates over 300 dealerships across the country, selling both new and used cars. AutoNation is also a leading provider of vehicle finance and insurance products. The company’s market cap is 5.47B as of 2022, and its ROE is 56.13%. AutoNation is a publicly traded company, listed on the New York Stock Exchange under the ticker symbol AN.
– Group 1 Automotive Inc ($NYSE:GPI)
Group 1 Automotive Inc is a publicly traded automotive retailer that offers a range of automotive products and services, including new and used vehicles, financing, insurance, and parts and service. As of 2022, the company had a market capitalization of 2.53 billion and a return on equity of 32.9%. Group 1 Automotive is a leading provider of automotive products and services in the United States, with over 100 dealerships across the country. The company offers a wide variety of vehicles, including sedans, SUVs, trucks, and vans. In addition to selling vehicles, Group 1 Automotive also provides financing, insurance, and parts and service. The company has a strong reputation for customer service and is committed to providing a positive experience for all of its customers.
– Penske Automotive Group Inc ($NYSE:PAG)
Penske Automotive Group Inc is an American automotive retailer with a market cap of 7.28B as of 2022 and a ROE of 29.75%. The company operates in the United States, United Kingdom, and Australia. It sells and services vehicles through its dealerships.
Summary
Lithia Motors recently reported its financial results for the fourth quarter of FY2022, which ended on December 31 2022. Revenue for the quarter was down 14.9% year over year to $247.7 million. Despite this decrease in revenue, net income increased 10.8%, to $6990.2 million. Investors reacted negatively to the news, with the stock price dropping the same day.
For those considering investing in Lithia Motors, it is important to consider the long-term outlook for the company. Factors to consider include the sustainability of its revenue and income growth, its financial position, and the competitive environment it operates in. Investors should also consider how changes in the broader economy might impact the company’s operations and performance.
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