What were the key takeaways from Lithia Motors's earnings call?

Did Lithia Motors beat or miss consensus estimates last quarter?

What is Lithia Motors's gross profit margin?

What factors drove the changes in Lithia Motors's revenue and profit?

What guidance did Lithia Motors's management provide for the next earnings period?

What is the market's earnings forecast for Lithia Motors next quarter?

What is Lithia Motors's latest dividend and current dividend yield?

What were the key takeaways from Lithia Motors’s earnings call?

- **Used Vehicle Dominance**: 6.3% unit growth in used vehicles, 11.8% revenue growth in North America, and 7.7% same-store sales growth.
- **EV Strategy**: 43% of new car sales electrified, focus on used EVs, and $2 billion+ acquisitions targeting 15%+ ROI.
- **Financial Strength**: $174M free cash flow, 5.1% share buybacks, and disciplined SG&A control (64.8%).
- **Global Challenges**: U.S. EV market headwinds, U.K. regulatory changes, and adapting to ICE vehicles.

**【CEO Summary Section】**
- Lithia Motors reported strong used vehicle performance, with 6.3% unit growth in the quarter, driven by the Driveway platform and focus on value autos. 
- The company achieved 15% year-over-year growth in aftersales gross profit, with a 300 basis point improvement in service and parts margins.
- Management emphasized the importance of EVs, noting that 43% of new car sales were electrified vehicles and the potential for long-term growth in the used EV market.

**【CFO Financial Commentary】**
- GAAP net income was $420 million, with Non-GAAP EPS of $1.08, exceeding expectations. 
- Free cash flow of $174 million was used for share buybacks (5.1% of outstanding shares) and strategic acquisitions, with a focus on 15%+ ROI projects.
- The company maintained disciplined cost control, with SG&A as a percentage of gross profit improving to 64.8% in North America.

**【Q&A Highlights】**
- Lithia is navigating U.S. EV market headwinds, with a focus on used EVs and partnerships with manufacturers. 
- The company expects to close $2 billion in acquisitions by year-end, prioritizing 15%-30% hurdle rates.
- Regulatory changes in the U.K. (e.g., EV tariffs) are creating challenges, but the company is adapting by focusing on ICE vehicles and value auto sales.
- The used car market remains resilient, with 11.8% revenue growth in North America and 7.7% same-store sales growth in the U.S.

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