Lithia Motors stock rises as Benchmark reiterates Buy on strong Q2 outlook

Published 16/07/2025, 15:46
Lithia Motors stock rises as Benchmark reiterates Buy on strong Q2 outlook

Investing.com - Lithia Motors (NYSE:LAD) stock is gaining after Benchmark reiterated its Buy rating and $400 price target following the company’s preliminary second-quarter results. Trading at $332.62, with a P/E ratio of 10.58, the stock aligns closely with InvestingPro’s Fair Value assessment.

The auto retailer expects earnings per share between $9.70 and $10.00 for the second quarter of 2025, representing a 23% to 27% increase year-over-year, according to preliminary results released on July 15.

Benchmark noted this outlook exceeds its previous estimate of $8.92 per share, with the firm now forecasting quarterly sales of $9.6 billion, EBITDA of $421 million, and EPS of $9.78.

For the full fiscal year 2025, Benchmark projects Lithia will achieve sales of $37.9 billion, adjusted EBITDA of $1.7 billion, and earnings per share of $36.05.

Lithia Motors is scheduled to release its complete second-quarter financial results on Tuesday, July 29, before the market opens.

In other recent news, Lithia Motors reported preliminary second-quarter 2025 earnings per share between $9.70 and $10.00, surpassing both Citi’s estimate of $8.94 and the FactSet consensus estimate of $8.56. Despite this earnings beat, Lithia’s preliminary revenue, ranging from $9.4 billion to $9.6 billion, fell short of the $9.61 billion average analyst estimate compiled by Bloomberg. Driveway Finance, a part of Lithia, contributed between $15 million and $18 million during the quarter, more than doubling its performance from the previous year. Lithia also repurchased 1.5% of its outstanding shares during the quarter, bringing year-to-date repurchases to 3.0%. In a significant strategic move, Pinewood Technologies Group acquired Lithia’s 51% stake in their joint venture for $76.5 million, with a five-year contract to deploy Pinewood’s platform across Lithia’s dealerships. Goldman Sachs initiated coverage of Lithia Motors with a Neutral rating, citing uncertainties in near-term demand and potential macroeconomic pressures. The firm set a price target of $340, reflecting a balanced risk/reward profile for the stock. Lithia’s recent developments indicate a focus on strengthening its core operations and expanding its technological capabilities.

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