The adjusted EPS beat may buoy the stock short-term, but the deteriorating year-over-year earnings trend and net income plunge are red flags. Monitor next quarter's same-store sales and margin trajectory; the company's reliance on buybacks to support EPS may be unsustainable if earnings continue declining.
Price Chart
Executive Summary
Lithia Motors reported Q1 2026 adjusted EPS of $7.34, beating consensus of $6.86 by 7%, but GAAP EPS fell 46% YoY to $4.28 and net income declined 52% to $102M. Revenue rose 1% to a record $9.3B, slightly above estimates. The beat on adjusted EPS may provide short-term support, but the sharp year-over-year earnings decline signals ongoing margin pressure and losses from investments.
Key Financial Metrics
Key Facts
- Record Q1 2026 revenue of $9.3 billion, up 1% YoY.
- GAAP diluted EPS $4.28, down 46% YoY.
- Adjusted diluted EPS $7.34, down 7% YoY, beating consensus of $6.86.
- Net income $102.0 million, down 51.7% YoY.
- Repurchased $259 million of shares (4% of outstanding) during the quarter.
- Declared $0.57 per share dividend, payable May 22, 2026.
Financial Impact
Adjusted EPS $7.34 exceeded consensus by $0.48 (7% beat), but GAAP earnings declined sharply. Operating income fell 17.4% to $335.8M. Net income margin compressed from 2.3% to 1.1%.
Risk Factors
- Sharp decline in GAAP and adjusted net income suggests structural margin pressure.
- Unrealized losses on investment in Pinewood Technologies Group PLC impacted results.
- SGA expense grew 8.9% while revenue grew only 1%, implying cost creep.
- New vehicle unit sales fell 4.7% and GPU compressed 7.2%.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001023128-26-000031 |
| Document: lad-20260429.htm | 0001023128-26-000031 |
| Document: 0001023128-26-000031-index-headers.html | 0001023128-26-000031 |
| Document: 0001023128-26-000031-index.html | 0001023128-26-000031 |
| Document: 0001023128-26-000031.txt | 0001023128-26-000031 |
| 8-K Data (Synthetic) | 0001023128-26-000031 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 8-K | $269.13 $291.07 | ▲ +8.15% | ▲ +9.33% | $287.26 (+6.74%) |
Sep 29, 2026 28d ago | Press Release | $289.26 | awaiting T+1 | — | $287.26 (−0.69%) |
Sep 25, 2026 4w ago | 8-K | $303.07 $289.26 | ▼ −4.56% | ▼ −4.37% | $287.26 (−5.22%) |
Sep 14, 2026 6w ago | Insider Cluster | $345.91 $339.23 | ▼ −1.93% | ▼ −1.49% | $287.26 (−16.96%) |
Aug 25, 2026 9w ago | Press Release | $371.89 $370.15 | ▼ −0.47% | ▼ −0.49% | $287.26 (−22.76%) |
Jul 30, 2026 12w ago | ANALYST-DOWNGRADE | $405.03 $385.42 | ▼ −4.84% | ▼ −5.55% | $287.26 (−29.08%) |
Jul 29, 2026 12w ago | 8-K | $427.48 $405.03 | ▼ −5.25% | ▼ −6.93% | $287.26 (−32.80%) |
Jul 29, 2026 12w ago | Press Release | $427.48 $405.03 | ▼ −5.25% | ▼ −6.93% | $287.26 (−32.80%) |
Jul 14, 2026 15w ago | Press Release | $319.25 | awaiting T+1 | — | $287.26 (−10.02%) |
Jun 20, 2026 18w ago | Institutional Cluster | $295.15 $297.08 | ▲ +0.65% | ▲ +2.11% | $287.26 (−2.67%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers