Revenue during the quarter grew 12.77 percent to $2,236.10 million from $1,982.86 million in the previous year period. Gross margin for the quarter contracted 21 basis points over the previous year period to 15.28 percent. Total expenses were 96.15 percent of quarterly revenues, down from 96.32 percent for the same period last year. This has led to an improvement of 18 basis points in operating margin to 3.85 percent.

Operating income for the quarter was $86.14 million, compared with $72.92 million in the previous year period.

"Through a disciplined acquisition strategy and strong operational execution, we’re pleased to report our 26th consecutive quarter of record earnings per share," said Bryan DeBoer, President and Chief executive officer. "We grew revenue 13% and adjusted earnings 12% over last year and a significant number of stores still have ample opportunity to improve. Since 2010, we have grown our revenue four-fold and our EPS seven-fold, all while currently maintaining a leverage ratio of less than two. The ability to flex our balance sheet coupled with our free cash flow provides capacity to continue acquisitions at a similar or accelerated cadence in 2017 and beyond."

For fiscal year 2017, Lithia Motors, Inc expects revenue to be in the range of $9,200 million to $9,400 million and its diluted earnings per share to be in the range of $8.05 to $8.35.