Investing.com -- On Wednesday, Lithia & Driveway (NYSE: LAD) reported third quarter results that exceeded analyst expectations, with adjusted diluted earnings per share of $10.34, representing a 9% increase from $9.50 in the same period last year.

Shares of the company were mostly flat, edging up 0.56% in pre-market trading following the announcement.

Revenue reached a record $9.9 billion, up 3% YoY from $9.7 billion. The company also announced a 7% increase to its quarterly dividend to $0.75 per share.

The automotive retailer’s adjusted EPS surpassed expectations as used vehicle profitability strengthened and aftersales margins expanded. Used retail GPUs increased $197, or 11% YoY, while aftersales gross profit increased 2.4% on a same-store basis with gross margin reaching 59.5%, a 100-basis point increase. Financing Operations income jumped 69% YoY to $32.3 million with record originations of $937 million.

"Our people and our ecosystem set Lithia & Driveway apart again this quarter, delivering record quarterly revenues and continued growth in earnings per share," said Bryan DeBoer, President and CEO. "The capital decisions of the past year are reflected in our financial results, with a meaningfully lower share count magnifying every dollar we earn."

The company reported GAAP diluted earnings per share of $13.22, a 54% increase from $8.61 in the third quarter of 2025. Net income reached $292.9 million, up 34% from $218.6 million in the prior year period.

During the quarter, LAD repurchased approximately 246,000 shares at a weighted average price of $345, representing 1.1% of outstanding shares. The company has repurchased 8.7% of outstanding shares in 2026, with approximately $535 million remaining under its current authorization.

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