Winners And Losers Of Q4: Lithia (NYSE:LAD) Vs The Rest Of The Vehicle Retailer

Wrapping up Q4 earnings, we look at the numbers and key takeaways for the vehicle retailer stocks, including Lithia (NYSE:LAD) and its peers.

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 weak Q4; on average, revenues missed analyst consensus estimates by 5.8% Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but vehicle retailer stocks held their ground better than others, with the share prices up 6.5% on average since the previous 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 $7.67 billion, up 10.5% year on year, falling short of analyst expectations by 3.5%. It was a weaker quarter for the company, with a miss of analysts’ revenue estimates as same store sales fell.

“2023 completes another successful year of tremendous growth and building strategic diversification. My team and I are excited to turn our efforts to even higher levels of execution in 2024, as we now have all the key components of our long-term growth strategy in place,” said Bryan DeBoer, President and CEO.

Lithia pulled off the fastest revenue growth of the whole group. The stock is down 1% since the results and currently trades at $295.77.

Read our full report on Lithia here, it’s free.

Best Q4: 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 $1.11 billion, down 13.4% year on year, falling short of analyst expectations by 2.5%. It was an ok quarter for the company, with a decent beat of analysts’ EPS estimates but a miss of analysts’ revenue estimates.

Camping World achieved the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 11.6% since the results and currently trades at $28.

Is now the time to buy Camping World? Access our full analysis of the earnings results here, it’s free.

Slowest 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 $299.6 million, down 7.9% year on year, falling short of analyst expectations by 14.6%. It was a weak quarter for the company, with a miss of analysts’ revenue estimates.

America’s Car-Mart had the weakest performance against analyst estimates in the group. The stock is up 0.6% since the results and currently trades at $62.67.

Read our full analysis of America’s Car-Mart’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 $6.15 billion, down 5.5% year on year, falling short of analyst expectations by 2.5%. It was a weaker quarter for the company, with a miss of analysts’ revenue estimates.

The stock is up 15% since the results and currently trades at $85.94.

Read our full, actionable report on CarMax here, it’s free.

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