Lithia Mtrs Inc Stock Price, News & Analysis

Driveway, a platform by LAD, reported 1,650 transactions in December, surpassing its target of 1,250 transactions by 32%. This results in an estimated annual revenue increase of nearly $0.5 billion, contributing to a total of approximately $5 billion in annualized revenue when combined with Lithia's e-commerce business. Bryan DeBoer, President and CEO, emphasized that such performance is crucial for achieving over $1 of EPS for every billion dollars in revenue. Driveway is attracting a significant number of new customers, with 96% of users being first-time customers.

Lithia & Driveway (NYSE:LAD) has acquired three Ford stores from the Elder Auto Group, enhancing its presence in Florida and Michigan. The newly acquired stores, Elder Ford of Tampa, Troy, and Romeo, are projected to yield $425 million in annual revenue. This acquisition raises LAD's total expected annualized revenue in 2021 to nearly $7 billion. The company is on track to surpass its $50 billion revenue goal set in 2020, funded through on-balance sheet capacity, solidifying its strategy for growth through retail consolidation.

Lithia & Driveway (NYSE:LAD) announced a $750 million increase in its share repurchase authorization, totaling approximately $885 million available for buybacks. This decision follows strong earnings that generated higher-than-expected free cash flows. Additionally, Driveway Finance completed its first asset-backed securities offering, raising $344 million to support its auto loan portfolio growth. Driveway Finance is anticipated to grow from 5% to 15% of overall business, contributing significantly to profitability. The strategic focus remains on capital allocation for acquisitions and investments.

The Presidio Group has advised Qvale Auto Group on the strategic sale of two Audi dealerships in Florida to Lithia Motors (NYSE: LAD). This acquisition is part of Lithia's strategy to expand its dealership brands in the region. Bryan DeBoer, Lithia’s CEO, expressed enthusiasm about entering the Florida market with Audi, given their success in other areas. The Presidio Group highlighted their extensive experience in the automotive retail sector, having completed over 205 transactions worth more than $14 billion.

Lithia & Driveway (NYSE: LAD) announced its entry into South Florida with the acquisition of Audi Fort Lauderdale and Audi Coral Springs. These new dealerships are projected to generate $275 million in annualized revenue, significantly expanding LAD's luxury market presence in the Southeast. This acquisition increases the company's expected annualized revenue for 2021 to $6.5 billion and aligns with their goal to reach $50 billion in revenue and earnings per share by 2025. Financing was secured through existing capacity.

Lithia & Driveway (LAD) has expanded into the North American powersports market by acquiring Pfaff Harley-Davidson in Toronto, Canada. This marks LAD's first motorcycle dealership. The deal is expected to contribute to LAD’s annualized revenue, bringing the total for 2021 to nearly $6.3 billion. The company aims to exceed its target of $50 billion in revenue and $50 earnings per share by 2025.

Lithia & Driveway (NYSE: LAD) reported record-breaking third quarter 2021 results, with revenue soaring 70% to $6.2 billion, and net income rising 95% to $309 million. Earnings per share reached $10.11, a significant increase from $6.86 in Q3 2020. The company also highlighted strong performance in both new and used vehicle retail sales, with increases of 53.9% and 90.2%, respectively. Notably, adjusted net income rose 115% year-over-year. Corporate developments included several acquisitions that are projected to add $1.7 billion in annual revenue.

Lithia & Driveway (NYSE: LAD) will announce its third quarter 2021 earnings on October 20, 2021, before the market opens. A conference call to discuss the results is scheduled for that same day at 10:00 a.m. ET. This growth-focused company aims to consolidate North America’s largest retail sector and is recognized as the second fastest-growing in terms of 10-Year EPS Growth per the Fortune 500. LAD emphasizes consumer experience and operational excellence, promoting brand loyalty through a variety of transportation solutions.

Lithia & Driveway (NYSE: LAD) has partnered with the city of Medford for a five-year naming rights agreement for U.S. Cellular Community Park, set to change its name to "Lithia & Driveway Fields" on January 1, 2022, pending city council approval. The partnership includes a $725,000 donation for turf replacement on 15 fields and promotional efforts to develop a new park logo and enhance signage. The park has generated over $125 million in economic impact since 2008, hosting over 550 tournaments and 55,000 games.