LAD - Lithia Motors jumps after solid earnings beat amid tough backdrop

Lithia Motors (LAD) trades higher after topping estimates on both lines of its Q1 report. BofA's breakdown on the earnings report: "Overall, LAD’s Q1 results mirrored that of AN’s impressive results yesterday, with outperformance largely across the board. Specifically, on an operating basis, the bottom line beat was driven by stronger same-store sales growth and impressive execution, while gross margins were relatively OK. Again, this was in spite of an increasingly tight inventory environment in the US market. Like AutoNation, we believe LAD’s Q1 results are a harbinger of strong results to be printed this earnings season (and likely much of this year)." BofA keeps a Neutral rating on Lithia as it see less upside for LAD in comparison to other names in the sector. Shares of Lithia Motors are 2.72% higher premarket to $385.00.

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Lithia Motors jumps after solid earnings beat amid tough backdrop