Lithia Motors Inc. (NYSE: LAD) saw its stock price soar 5.19% during intraday trading on Wednesday, following the release of better-than-expected first quarter 2026 financial results.
The automotive retailer reported adjusted diluted earnings per share of $7.34 for the quarter, surpassing the analyst consensus estimate of $6.83. Revenue reached $9.271 billion, also exceeding expectations of $9.222 billion. While adjusted EPS decreased 7% year-over-year from $7.93, the strong beat on both top and bottom lines drove investor optimism.
Key drivers included a 4.6% increase in used vehicle revenue on a same-store basis, record originations of $840 million at Driveway Finance Corporation with an 18% penetration rate, and continued strength in aftersales where revenue grew 3.8% with gross profit increasing 5.7%. The company also repurchased $259 million worth of shares, representing 4% of outstanding shares, and declared a quarterly dividend of $0.57 per share.
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