Gold prices steady ahead of Fed decision; weekly weakness noted
NEW YORK - Lithia Motors (NYSE:LAD) & Driveway reported better-than-expected fourth quarter earnings and revenue on Wednesday, sending its shares surging 7.74% in early trading.
The auto retailer posted adjusted earnings per share of $7.79, surpassing analyst estimates of $7.31. Revenue for the quarter jumped 20% YoY to $9.22 billion, also beating the consensus forecast of $8.99 billion.
Lithia’s new vehicle retail sales showed strength, with same-store unit sales increasing 7.4% compared to the fourth quarter of 2023. The company’s aftersales business also performed well, with gross profit rising 4.5% on a same-store basis.
"2024 marks another milestone year for Lithia & Driveway, with record-breaking fourth-quarter revenues, the first profitable year for Driveway Finance, and the continued maturity of foundational elements to our strategy," said Bryan DeBoer, President and CEO.
The company’s financing arm, Driveway Finance Corporation, originated $501 million in loans during the quarter. Its portfolio grew to $3.9 billion in average managed receivables, with net interest margin expanding to 4.7%.
For the full year 2024, Lithia reported record revenue of $36.2 billion, up 17% from 2023. However, adjusted diluted EPS for the year decreased 19% to $29.96.
Lithia also announced a quarterly dividend of $0.53 per share, payable on March 21, 2025, to shareholders of record on March 7, 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.