NYSE:LADSpecialty Retail
Lithia Motors (LAD) Stock Price Drops Into A Margin Squeeze Debate
Lithia Motors stock just gave back some of its recent strength, dropping about 5% today, even though the Q2 headline was anything but soft. The company posted about US$9.8b in revenue and basic earnings per share of roughly US$11.56. That is a hefty profit print for an auto retailer that already carried a P/E of 12.5 before the move.
The emotional punch for investors is that the margin story still feels tight. Trailing net margin sits around 1.9%, which keeps every wobble in auto gross profit...