) reported the acquisition of Connell Chevrolet located in Killeen,
Texas. The store, which will be named of All American Chevrolet of
Killeen, will contribute $60 million to the company's total
AUTONATION INC (AN): Free Stock Analysis Report
LITHIA MOTORS (LAD): Free Stock Analysis Report
PENSKE AUTO GRP (PAG): Free Stock Analysis
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The acquisition will lead to the expansion of Lithia Motors in
Texas. The company will also enjoy the benefits associated with the
dominant position of Connell in Killeen. Further, there will be an
addition of 55 members to the company's total number of employees.
Lithia Motors, in May 2012, acquired Bellingham, Washington-based
Jerry Chambers Chevrolet Cadillac. The store, which was named
Chambers Chevrolet Cadillac of Bellingham, is expected to increase
the company's revenues by $40 million.
Lithia Motors, in second-quarter 2012, witnessed a 41% surge in its
earnings per share to 76 cents from 54 cents in the comparable
quarter of 2011 (excluding all special items). The results
surpassed the Zacks Consensus Estimate by 12 cents. Profits
escalated 38% to $19.9 million from $14.4 million in the year-ago
Revenues went up 26% to $847.1 million, beating the Zacks Consensus
Estimate of $773 million. The growth was driven by strong retail
new vehicle sales and higher revenues from finance and insurance
Lithia Motors is the ninth largest automotive retailer in U.S. With
86 stores in 11 states, the company provides 28 new vehicle brands
along with all brands of used vehicle. It competes with
Penske Automotive Group Inc.
The company's recent acquisitions including Chevrolet Cadillac
store in Bellingham, Wash., GMC and Buick franchises in Fairbanks,
Alaska, and new Dodge and Ram franchises in Las Cruces, N.M. are
expected to aid to earnings growth in the future. Currently, Lithia
retains a Zacks #1 Rank, which translates into a short-term (1 to 3
months) Strong Buy rating.