Wall Street analysts forecast that Lithia Motors (LAD) will report quarterly earnings of $9.70 per share in its upcoming release, pointing to a year-over-year increase of 2.1%. It is anticipated that revenues will amount to $9.71 billion, exhibiting an increase of 0.4% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 4.7% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Lithia Motors metrics that Wall Street analysts commonly model and monitor.
The collective assessment of analysts points to an estimated 'Revenues- Finance and insurance' of $374.14 million. The estimate indicates a change of -1.2% from the prior-year quarter.
Analysts predict that the 'Revenues- Used vehicle' will reach $3.38 billion. The estimate points to a change of +9.3% from the year-ago quarter.
The average prediction of analysts places 'Revenues- New vehicle' at $4.86 billion. The estimate suggests a change of +5% year over year.
Analysts' assessment points toward 'Revenues- Aftersales' reaching $1.09 billion. The estimate points to a change of +5.5% from the year-ago quarter.
The consensus among analysts is that 'Same Store Operating- Revenues- Finance and insurance' will reach $352.02 million. The estimate suggests a change of -5.2% year over year.
It is projected by analysts that the 'Same Store Operating- Revenues- Used vehicle' will reach $3.15 billion. The estimate indicates a year-over-year change of +4.2%.
Analysts forecast 'Unit sales - New vehicle' to reach 101,604 . Compared to the present estimate, the company reported 96,639 in the same quarter last year.
The combined assessment of analysts suggests that 'Unit sales - Used vehicle retail' will likely reach 113,169 . Compared to the present estimate, the company reported 109,097 in the same quarter last year.
According to the collective judgment of analysts, 'Average selling price - New vehicle' should come in at $47267.50 . Compared to the current estimate, the company reported $47913.00 in the same quarter of the previous year.
Analysts expect 'Average selling price - Used vehicle retail' to come in at $29340.49 . Compared to the present estimate, the company reported $28381.00 in the same quarter last year.
The consensus estimate for 'Same Store Operating - Unit sales - New vehicle' stands at 98,393 . The estimate compares to the year-ago value of 94,480 .
Based on the collective assessment of analysts, 'Same Store Operating - Unit sales - Used vehicle retail' should arrive at 105,710 . The estimate compares to the year-ago value of 106,637 .
View all Key Company Metrics for Lithia Motors here>>>Shares of Lithia Motors have experienced a change of -7.3% in the past month compared to the +0.7% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), LAD is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Lithia Motors, Inc. (LAD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).