MEDFORD, Ore. - Lithia & Driveway (NYSE: LAD) shares fell 5.51% as the automotive retailer reported first-quarter earnings that missed analyst expectations.
The company announced adjusted earnings per share (EPS) of $6.11, falling short of the consensus estimate of $7.91 by $1.80. Despite the earnings miss, the company achieved a record first-quarter revenue of $8.6 billion, slightly surpassing the analyst projection of $8.58 billion.
The first quarter of 2024 saw a significant 23% increase in revenue compared to the $7.0 billion reported in the first quarter of 2023. However, net income attributable to LAD per diluted share was $5.89, marking a 29% decrease from the $8.30 reported in the previous year. Adjusted net income also saw a decline, with a 27% decrease year-over-year (YoY), from $233 million in Q1 2023 to $171 million in Q1 2024.
Lithia & Driveway's President and CEO, Bryan DeBoer, commented on the results: "In the first quarter, our teams responded as the industry continued to normalize inventories and profitability. We are committed to driving improvements across our business." He further highlighted the company's strategic shift, focusing on enhancing shareholder returns through dividend payments and share repurchases.
The company's balance sheet remains robust, with approximately $1.3 billion in cash and cash equivalents, marketable securities, and availability on revolving lines of credit at the end of the first quarter. Lithia & Driveway also declared a dividend of $0.53 per share for the first quarter, payable on May 24, 2024, to shareholders of record on May 10, 2024.
The company's share repurchase program continued in April 2024, with approximately 58,000 shares repurchased at a weighted average price of $264.42.
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