Overview

• US automotive retailer's Q1 revenue up 1%, slightly beating analyst expectations

• Adjusted EPS for Q1 fell 7% yr/yr, but beat consensus

• Company repurchased $259 mln of shares, or 4% of outstanding shares in Q1

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• USED VEHICLE GROWTH - Used vehicle revenue increased 4.6% on a same-store basis and used retail gross profit per unit rose 9% sequentially

• AFTERSALES PERFORMANCE - Aftersales revenue grew 3.8% and gross profit rose 5.7% on a same-store basis, with gross margin up 100 basis points

• FINANCE ORIGINATIONS - Driveway Finance Corporation achieved record originations of $840 mln with an 18.0% penetration rate

Company press release: ID:nGNXgDRgx

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$9.27 bln	$9.22 bln (11 Analysts)
Q1 Adjusted EPS	Beat	$7.34	$6.83 (12 Analysts)
Q1 EPS		$4.28
Q1 Adjusted Net Income	Beat	$173.30 mln	$158.29 mln (8 Analysts)
Q1 Dividend		$0.57

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

• Wall Street's median 12-month price target for Lithia Motors Inc is $376.00, about 35.6% above its April 28 closing price of $277.24

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

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