Lithia Motors stock set to fall after earnings miss, as gross margin and profit per vehicle drop

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Shares of Lithia Motors Inc. were indicated down about 4% in premarket trading Wednesday, after the automotive retailer reported fourth-quarter profit and...

Shares of Lithia Motors Inc. LAD were indicated down about 4% in premarket trading Wednesday, after the automotive retailer reported fourth-quarter profit and revenue that missed expectations, as gross margin contracted and vehicle profit per unit fell sharply. Net income declined to $247.7 million, or $9.00 a share, from $291.0 million, or $9.57 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $9.05 was well below the FactSet consensus of $10.10.

LAD were indicated down about 4% in premarket trading Wednesday, after the automotive retailer reported fourth-quarter profit and revenue that missed expectations, as gross margin contracted and vehicle profit per unit fell sharply. Net income declined to $247.7 million, or $9.00 a share, from $291.0 million, or $9.57 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $9.05 was well below the FactSet consensus of $10.10. Revenue grew 10.8% to $6.

 

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