Lithia Motors's 15min chart triggers Bollinger Bands Narrowing, KDJ Death Cross signal.

Lithia Motors' 15-minute chart has recently exhibited signs of Bollinger Bands Narrowing, accompanied by a KDJ Death Cross that occurred on August 1st, 2023 at 12:45. This indicates a decline in the magnitude of stock price fluctuations, coupled with a shift in momentum towards a downtrend, potentially leading to further decreases in the stock price.

Lithia Motors, Inc. (LAD) reported its second-quarter (Q2) 2025 earnings on July 29, 2025, surpassing market expectations. The company's adjusted earnings per share (EPS) of $10.24 exceeded the Zacks Consensus Estimate of $9.78, marking a significant improvement from the prior-year quarter's $7.87. Lithia's revenue of $9.58 billion increased by 3.7% year-over-year, surpassing the Zacks Consensus Estimate of $9.53 billion [1].

Segmental Performance
New vehicle retail revenues increased by 2.2% year-over-year to $4.5 billion, while used vehicle retail revenues rose by 3.6% to $3.1 billion. Both segments outperformed analyst estimates. Revenues from used vehicle wholesale jumped by 32.3% to $383 million, and aftersales revenues increased by 7.6% to $1.02 billion. However, fleet and others revenues contracted by 13.1% to $209.5 million [1].

Same-store new vehicle revenues increased by 2%, while same-store used vehicle retail sales rose by 6.5%. Same-store revenues from finance and insurance rose by 4.5%, and those from the aftersales unit increased by 8.5% [1].

Financial Tidbits
Lithia Motors' cost of sales increased by 3.7% year-over-year in Q2 2025, and SG&A expenses were $1.01 billion. The company announced a dividend of 55 cents per share, to be paid on August 22, 2025, and repurchased nearly 387,000 shares at an average price of $306. Lithia had $404.4 million in cash and cash equivalents as of June 30, 2025, and $6.7 billion in long-term debt [1].

Post-Earnings Price Action
Despite the strong earnings report, Lithia Motors' stock price has experienced a decline. On the latest trading day, the stock price decreased by 3.77%, with a 7.85% downturn over the recent full trading week and a 12.13% decline month-to-date [2].

CEO Commentary
Bryan B. DeBoer, CEO of Lithia Motors, highlighted the company's strong performance and strategic focus on high-margin adjacencies, such as financing and aftersales. He expressed optimism about continuing to scale these businesses and achieving long-term targets [2].

Guidance
Lithia Motors expects to maintain strong growth momentum, aiming for $2 billion to $4 billion in annual acquired revenues and targeting a minimum 15% after-tax hurdle rate for acquisitions. The company anticipates allocating 50% of free cash flow to share buybacks and achieving an SG&A ratio of 55% of gross profit [2].

Additional News
In June 2025, Lithia Motors expanded its operations by acquiring two Mercedes-Benz dealerships in Collierville, Tennessee, and Jackson, Mississippi, which is expected to generate an additional $220 million in annualized revenue [2].

References
[1] https://www.nasdaq.com/articles/lad-q2-earnings-beat-used-vehicle-aftersales-outperformance
[2] https://www.ainvest.com/news/lithia-motors-2025-q2-earnings-net-income-climbs-19-2-surpassing-expectations-2507/