As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at vehicle retailer stocks, starting with Lithia (NYSE:LAD).
Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.
The 4 vehicle retailer stocks we track reported a stunning Q4. As a group, revenues beat analysts’ consensus estimates by 6.7%.
While some vehicle retailer stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.6% since the latest earnings results.
Lithia (NYSE:LAD)
With a strong presence in the Western US, Lithia Motors (NYSE:LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.
Lithia reported revenues of $9.22 billion, up 20.2% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
"2024 marks another milestone year for Lithia & Driveway, with record-breaking fourth-quarter revenues, the first profitable year for Driveway Finance, and the continued maturity of foundational elements to our strategy." said Bryan DeBoer, President and CEO.
Lithia pulled off the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 16.4% since reporting and currently trades at $308.21.
Is now the time to buy Lithia? Access our full analysis of the earnings results here, it’s free.
Best Q4: America's Car-Mart (NASDAQ:CRMT)
With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ:CRMT) sells used cars to budget-conscious consumers.
America's Car-Mart reported revenues of $325.7 million, up 8.7% year on year, outperforming analysts’ expectations by 15.2%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
America's Car-Mart delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 26.2% since reporting. It currently trades at $48.48.
Is now the time to buy America's Car-Mart? Access our full analysis of the earnings results here, it’s free.
Camping World (NYSE:CWH)
Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE:CWH) still sells RVs along with boats and general merchandise for outdoor activities.
Camping World reported revenues of $1.20 billion, up 8.6% year on year, exceeding analysts’ expectations by 6.6%. It may have had the worst quarter among its peers, but its results were still good as it also locked in an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.
As expected, the stock is down 17.9% since the results and currently trades at $17.05.
Read our full analysis of Camping World’s results here.
CarMax (NYSE:KMX)
Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE:KMX) is the largest automotive retailer in the United States.
CarMax reported revenues of $6.22 billion, up 1.2% year on year. This result surpassed analysts’ expectations by 3%. It was a stunning quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
CarMax had the slowest revenue growth among its peers. The stock is down 10.3% since reporting and currently trades at $72.99.
Read our full, actionable report on CarMax here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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