Yahoo Finance Lithia (LAD) Expands Footprint in the US Southeast Region
Lithia Motors, Inc. LAD has expanded its presence in the U.S. Southeast Region by acquiring Sunrise Chevrolet Buick GMC at Collierville and Sunrise Buick GMC at Wolfchase in Memphis, TN, and Woodbridge Hyundai in the greater Toronto area. These new acquisitions are expected to generate more than $240 million in annualized revenues.
The prominent Sunrise stores in Tennessee represent LAD's entry into the Memphis market, enhancing its footprint in one of the country's most lucrative regions. The Woodbridge Hyundai location will eventually move to an existing owned facility, promising strong returns. Woodbridge Hyundai has been recognized as a "Best Dealership to Work for" by Automotive News for the last five years.
Per Bryan DeBoer, president and CEO of Lithia, the company offers an exceptional retail experience, emphasizing ease, convenience and optionality throughout the vehicle ownership lifecycle and the acquired teams are expected to enhance its ability to meet consumer needs effectively.
These acquisitions increase LAD's total expected annualized revenues acquired this year to more than $5.6 billion. The purchases were financed through existing on-balance sheet resources.
In February 2024, Lithia completed two acquisitions. The acquisition of U.K. car dealership group Pendragon is expected to solidify its expansion into Britain while the acquisition of Carousel Motor Group is expected to expand its footprint in Minneapolis-St. Paul. The acquisition of Pendragon and Carousel is expected to add around $4.5 billion and $900 million, respectively, to Lithia’s annualized revenues.
Zacks Rank & Key Picks
LAD currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the auto space are Blue Bird Corporation BLBD, Oshkosh Corporation OSK and American Axle & Manufacturing Holdings, Inc. AXL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 11.92%, respectively. The EPS estimates for 2024 and 2025 have improved 12 cents and 10 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 and 2025 have moved up 2 cents and 8 cents, respectively, in the past 30 days.
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