Lithia Motors, Inc. (LAD, Financial) reported its first-quarter revenue of $9.19 billion, which fell short of the market expectation of $9.28 billion. Despite this, the company demonstrated solid performance in retail unit growth. New retail units saw an increase of 3.6% on a same-store basis, while used retail unit decline narrowed significantly from 4.3% to 0.4% sequentially.
The company's president and CEO, Bryan DeBoer, highlighted the strength of Lithia's integrated ecosystem and strategic execution as critical drivers of their quarterly success. He noted that the company achieved year-over-year profitable growth every month during the quarter, thanks to expanding market share and enhancing operational efficiencies.
DeBoer emphasized that Lithia's diverse business model allows for adaptability in the fluctuating market environment. The company remains committed to delivering consistent, high-quality customer experiences across all channels, with a focus on sustaining this momentum through 2025 and beyond.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Lithia Motors Inc (LAD, Financial) is $423.77 with a high estimate of $500.00 and a low estimate of $310.00. The average target implies an upside of 43.43% from the current price of $295.45. More detailed estimate data can be found on the Lithia Motors Inc (LAD) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Lithia Motors Inc's (LAD, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lithia Motors Inc (LAD, Financial) in one year is $392.44, suggesting a upside of 32.83% from the current price of $295.45. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lithia Motors Inc (LAD) Summary page.
