Lithia & Driveway (LAD), one of the nation’s largest automotive retailers, has announced its highest-ever third-quarter revenue, reaching $9.2 billion, a year-over-year increase of 11%.
Even with challenges in the broader auto market, the company’s steady growth underscores its ability to adapt and leverage a diverse, customer-focused model.
Strong Revenue Growth with Expanding Finance Operations
The third-quarter revenue increase was driven by Lithia’s core operations and enhanced by the ongoing success of its financing division.
Driveway Finance Corporation (DFC) had a strong quarter, issuing $518 million in loans and completing a $615 million asset-backed securities offering, its ninth successful securitization.
FC’s expanding portfolio reflects Lithia’s strategic push into integrated finance solutions.
Earnings and Dividend Adjustments
Despite a strong quarter, Lithia’s Q3 net income reached $223 million, down 16% from last year, while adjusted net income fell 14% to $222 million.
Diluted earnings per share (EPS) were $7.80, an 18% drop from Q3 2023, with adjusted EPS at $8.21. This decrease was due to non-core expenses, including acquisition costs and gains from store sales.
Even with the dip, Lithia’s adjusted results show strong performance across its operations. The board announced a $0.53 per share dividend, payable on November 15, 2024, to shareholders on record by November 8.
This dividend underscores Lithia’s commitment to returning value to shareholders amid ongoing expansion.
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Strategic Acquisitions Strengthen Southeast Presence
Lithia continued its expansion in Q3 with the acquisition of three stores in Florida, strengthening its Southeast U.S. footprint.
This year, these acquisitions added over $5.9 billion in revenue, boosting Lithia’s share in import and luxury markets.
Share Repurchase Program and Strong Cash Position
In 2024, Lithia repurchased approximately 986,000 shares at an average price of $260, underscoring its commitment to increasing shareholder value.
The company closed the quarter with $1.1 billion in cash and credit, plus $0.4 billion in unfinanced real estate.
“We achieved strong performance in the third quarter, showcasing our team’s ability to leverage size and scale for sustainable growth,” said Bryan DeBoer, President and CEO of Lithia & Driveway.
“Our diversified model continues to enhance our market position, and we remain committed to delivering exceptional customer experiences while driving shareholder value.”
Lithia grew revenue by 16% in the first nine months of 2024, positioning to seize growth and strengthen leadership.
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