Zacks Research Reduces Earnings Estimates for Lithia Motors

Lithia Motors, Inc. (NYSE:LAD) – Investment analysts at Zacks Research dropped their Q2 2026 earnings per share estimates for Lithia Motors in a research report issued to clients and investors on Wednesday, February 25th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $9.37 for the quarter, down from their prior forecast of $9.80. The consensus estimate for Lithia Motors’ current full-year earnings is $34.45 per share. Zacks Research also issued estimates for Lithia Motors’ Q3 2026 earnings at $9.97 EPS, Q4 2026 earnings at $9.63 EPS, FY2026 earnings at $37.25 EPS, Q1 2027 earnings at $8.95 EPS, Q2 2027 earnings at $9.40 EPS, Q3 2027 earnings at $9.53 EPS, Q4 2027 earnings at $14.66 EPS and FY2027 earnings at $42.55 EPS.

Lithia Motors (NYSE:LAD) last released its quarterly earnings data on Wednesday, February 11th. The company reported $6.74 earnings per share (EPS) for the quarter, missing the consensus estimate of $8.09 by ($1.35). Lithia Motors had a return on equity of 12.76% and a net margin of 2.18%.During the same period last year, the firm earned $7.79 EPS. The business’s quarterly revenue was up .3% on a year-over-year basis.

Other analysts also recently issued research reports about the stock. Evercore boosted their price objective on shares of Lithia Motors from $440.00 to $500.00 and gave the stock an “outperform” rating in a research report on Monday, November 24th. JPMorgan Chase & Co. lowered shares of Lithia Motors from an “overweight” rating to a “neutral” rating and set a $335.00 price target on the stock. in a research note on Friday, February 20th. Barclays decreased their price objective on shares of Lithia Motors from $390.00 to $380.00 and set an “overweight” rating for the company in a research note on Tuesday, February 17th. Wall Street Zen lowered Lithia Motors from a “hold” rating to a “sell” rating in a report on Saturday. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Lithia Motors in a research report on Thursday, January 22nd. Seven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, Lithia Motors presently has an average rating of “Moderate Buy” and an average target price of $386.00.

Lithia Motors Stock Performance

Shares of LAD opened at $279.72 on Monday. The company has a market capitalization of $6.78 billion, a price-to-earnings ratio of 8.70 and a beta of 1.21. Lithia Motors has a 52-week low of $262.10 and a 52-week high of $360.55. The company has a quick ratio of 0.26, a current ratio of 1.17 and a debt-to-equity ratio of 1.46. The stock has a 50 day moving average price of $323.09 and a 200 day moving average price of $320.95.

Lithia Motors Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, March 6th will be paid a $0.55 dividend. The ex-dividend date is Friday, March 6th. This represents a $2.20 dividend on an annualized basis and a yield of 0.8%. Lithia Motors’s payout ratio is currently 6.85%.

Insider Activity at Lithia Motors

In other news, Director Congdon Stacy Loretz sold 75 shares of the stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $360.00, for a total transaction of $27,000.00. Following the completion of the sale, the director owned 1,810 shares in the company, valued at approximately $651,600. This represents a 3.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.87% of the company’s stock.

Institutional Trading of Lithia Motors

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Arwa LLC purchased a new position in shares of Lithia Motors in the 4th quarter valued at approximately $467,000. Aristides Capital LLC lifted its holdings in shares of Lithia Motors by 4.6% during the fourth quarter. Aristides Capital LLC now owns 2,707 shares of the company’s stock worth $900,000 after purchasing an additional 120 shares during the period. River Road Asset Management LLC lifted its holdings in shares of Lithia Motors by 33.6% during the fourth quarter. River Road Asset Management LLC now owns 742,677 shares of the company’s stock worth $246,814,000 after purchasing an additional 186,628 shares during the period. Dean Capital Management raised its position in Lithia Motors by 3.2% during the 4th quarter. Dean Capital Management now owns 5,425 shares of the company’s stock worth $1,803,000 after buying an additional 168 shares during the last quarter. Finally, Rare Wolf Capital LLC purchased a new position in Lithia Motors during the 4th quarter worth $1,878,000.

Key Headlines Impacting Lithia Motors

Here are the key news stories impacting Lithia Motors this week:

• Positive Sentiment: Zacks raised a near‑term EPS estimate (Q1), a positive revision that suggests better-than-expected short‑term profitability. Q1 EPS Estimates for Lithia Motors Raised by Zacks Research
• Positive Sentiment: Zacks also lifted its Q4 2027 EPS forecast to $14.66 from $11.38, indicating some expectations for stronger late‑cycle earnings, which could support longer‑term upside if realized. MarketBeat LAD overview (Zacks note)
• Neutral Sentiment: The street consensus cited in these notes still lists the current full‑year estimate at $34.45, showing that despite revisions from Zacks the broader market view for the near term is stable. MarketBeat LAD overview
• Negative Sentiment: Zacks cut multiple near‑term and mid‑cycle forecasts: Q2–Q4 2026 quarter estimates were trimmed (e.g., Q2 2026 to $9.37, Q3 2026 to $9.97, Q4 2026 to $9.63) and FY2026 was lowered to $37.25 from $38.19 — reductions that signal weaker expected earnings in the coming year. MarketBeat LAD overview (Zacks cuts)
• Negative Sentiment: Zacks also trimmed several 2027 quarterly estimates (Q1–Q3 2027) and reduced FY2027 to $42.55 from $43.72, indicating more conservative medium‑term expectations that could weigh on sentiment and valuation multiple. MarketBeat LAD overview (Zacks cuts)
• Negative Sentiment: Independent outlet Wall Street Zen lowered its stock rating on LAD, adding downward pressure from sentiment/technical traders and investors who follow third‑party ratings. Lithia Motors (NYSE:LAD) Stock Rating Lowered by Wall Street Zen

About Lithia Motors

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.