Lithia Motors’ Q4 2024 Earnings Conference Call: Insights and Impacts
On February 12, 2025, Lithia Motors, Inc. (NYSE: LAD) held its Q4 2024 earnings conference call. The call was attended by several prominent financial analysts, including Ryan Sigdahl from Craig-Hallum, Bret Jordan from Jefferies, Rajat Gupta from JPMorgan, Chris Bottiglieri from BNP Paribas, Jeff Lick from Stephens, John Murphy from Bank of America Merrill Lynch, Colin Langan from Wells Fargo, and Ron Josey from Citi, among others. The call was moderated by Jardon Jaramillo, Lithia Motors’ Senior Director of Investor Relations. The company was represented by Bryan DeBoer, CEO, President, and Director; Adam Chamberlain, Executive Vice President and COO; and Tina Miller, Senior Vice President and CFO.
Company Highlights
During the call, the Lithia Motors executives discussed the company’s strong performance in Q4 2024. They reported a 12.5% increase in new vehicle sales and a 15% increase in used vehicle sales compared to the same quarter in the previous year. The company’s gross profit per new vehicle retailed was up 11.3%, and gross profit per used vehicle retailed was up 12.2%. The company also announced a $1 billion share repurchase program.
Impacts on Individual Investors
The strong earnings report and positive outlook for the future sent Lithia Motors’ stock soaring, with shares up over 10% in after-hours trading following the conference call. This is good news for individual investors who hold LAD stock, as the increase in value represents a significant return on investment for those who bought in before the earnings announcement.
Impacts on the Automotive Industry
The strong performance of Lithia Motors is a positive sign for the overall health of the automotive industry. The company’s success in increasing sales and profitability despite industry-wide challenges, such as supply chain disruptions and rising costs, shows that there is still demand for new and used vehicles. This bodes well for other automotive retailers, as well as automakers and suppliers.
Impacts on Consumers
For consumers, the strong earnings report from Lithia Motors may lead to increased competition among automotive retailers. As the industry recovers from the pandemic and supply chain disruptions, consumers may see more incentives and promotions to attract buyers. This could lead to better deals for consumers looking to purchase new or used vehicles.
Conclusion
Lithia Motors’ strong Q4 2024 earnings report is a positive sign for the automotive industry as a whole. The company’s success in increasing sales and profitability, despite industry-wide challenges, shows that there is still demand for new and used vehicles. This is good news for individual investors, as well as consumers and other players in the automotive industry. As the industry continues to recover, we can expect to see more competition among retailers and better deals for consumers.
- Lithia Motors reported strong Q4 2024 earnings, with increases in new and used vehicle sales and gross profit.
- The earnings report sent LAD stock soaring, with shares up over 10% in after-hours trading.
- The strong performance is a positive sign for the overall health of the automotive industry.
- Consumers may see increased competition among automotive retailers and better deals.
