Auto retailer Lithia & Driveway posted record $9.8B Q2 revenue and 17% EPS growth. The stock surged 14% to a 52-week high on the results. Shares hit $414.60 intraday.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Lithia & Driveway (NYSE: LAD) shares surged 14.4% to $409.75 on Tuesday, hitting a new 52-week high after the auto retailer posted record second-quarter revenue of $9.8 billion.
The stock topped the NYSE gainers list as the company reported diluted EPS of $11.54, up 17% from $9.87 a year earlier. On an adjusted basis, EPS came in at $10.03, a 9% increase from the prior-year quarter's $9.20.
Revenue rose 2% from $9.6 billion in the same period of 2025. Net income edged up 1.3% to $261.6 million, though adjusted net income fell 6% to $227.6 million after stripping out an unrealized gain on the company's investment in Pinewood Technologies Group PLC and other non-core items.
For the first six months of 2026, revenue totaled $19.1 billion, up 2%. Diluted EPS for the half was $15.68, down 12% from $17.80. Adjusted diluted EPS rose 1% to $17.32.
During the quarter, the company acquired five stores expected to generate $340 million in annualized revenue and divested three stores representing $120 million in annualized revenue. As of June 30, Lithia held roughly $1.3 billion in cash, marketable securities and available credit.
The board approved a $0.70 per share dividend for the second quarter, payable Aug. 21 to shareholders of record Aug. 7. The company also repurchased about 854,000 shares at a weighted average price of $284, leaving approximately $620 million remaining under its current buyback authorization.
Lithia & Driveway is the largest global automotive retailer, operating across the full vehicle ownership lifecycle. The second-quarter earnings call is scheduled for 10:00 a.m. ET Tuesday.
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