Lithia Motors Q2 Profit Up; Lifts Annual Targets

(RTTNews) - Lithia Motors, Inc. (LAD), Wednesday said its unadjusted net income from continuing operations for the second quarter was $25.3 million or $0.97 per share, compared with $20.0 million or $0.76 per share during the same quarter last year.

Excluding an $0.08 per share expense due to a non-core legal reserve related to a case filed in 2006, partially offset by a tax attribute, adjusted net income from continuing operations for the three-month period totaled $27.4 million or $1.05 per share. On average, nine analysts polled by Thomson Reuters expected earnings per share of $0.90 for the third quarter. Analysts' estimates typically exclude one-time items.

Revenue from continuing operations increased 23 percent to $1 billion from $822.3 million during the corresponding quarter last year. Analysts estimated the firm to clock in revenues of $975.81 million.

Lithia proposed a dividend of $0.13 per share for the second quarter 2013, payable on August 23 to shareholders of record on August 9.

Looking forward, the company said it expects earnings of $1.06 to $1.08 per share for the third quarter and increased full-year earnings to $3.80 - $3.85 per share from $3.48 - $3.55 announced earlier. Revenues forecast is now expected to be around $3.9 billion - $4.0 billion for the year, up from expected $3.8 billion - $3.9 billion.

Analysts expect the company to report earnings per share of $1.04 for the next quarter, and $3.64 per share for the year. The Street estimates revenues for the year of $3.91 billion.