Lithia Motors LAD extended its rally for the third straight day on Apr 23, following first-quarter 2021 earnings release on Apr 21. Shares of the company increased 4.2% on the back of stellar results. Not only did the auto retailer post a comprehensive beat, it also recorded higher year-over-year earnings and revenues. Investors were also encouraged by the fact that the company hiked dividend payout.It reported first-quarter 2021 adjusted earnings of $5.89 per share, which beat the Zacks Consensus Estimate of $4.73. Higher-than-expected revenues across all units but one led to the outperformance. The bottom line increased a whopping 193% from the prior-year quarter’s $2.01 per share. Total revenues also rose 54.9% year over year to $4,343 million. Moreover, the top line surpassed the Zacks Consensus Estimate of $3,865 million. In fact, for the reported quarter, Lithia Motors claims to have reported the highest quarterly earnings and revenues in its history.Segmental PerformanceNew vehicle retail revenues increased 59.7% year over year to $2,193.2 million and topped the Zacks Consensus Estimate of $1,959 million. New vehicle units sold climbed 50% from the prior-year quarter to 53,864. The average selling price of new-vehicle retail rose 6.4% from the prior-year quarter to $40,718.Used-vehicle retail revenues rose 54.6% year over year to $1,352.2 million and beat the Zacks Consensus Estimate of $1,211 million. Used-vehicle retail units sold grew 38.5% from the year-ago quarter to 59,027. The average selling price of used-vehicle retail improved 11.7% to $22,907 from the year-ago figure of $20,510. Revenues from used-vehicle wholesale surged 102.7% year over year to $135.2 million and surpassed the consensus mark of $92 million.Revenues from service, body and parts were up 22.5% from the prior-year period to $404 million but fell shy of the Zacks Consensus Estimate of $416 million. The company’s F&I (Finance & Insurance) business recorded 62.8% year-over-year growth in revenues to $198.4 million, topping the consensus estimate of $179 million. Revenues from fleet and others were $60 million, which increased 60.4% year over year, surpassing the consensus mark of $43.36 million.While same-store new vehicle sales rose 29.4% year over year, same-store used vehicle retail sales increased 32%. While same-store revenues from the F&I business soared 29.7%, that of the service, body and parts unit dropped 1% from the prior-year quarter.Financial TidbitsCost of sales increased 54.8% year over year for first-quarter 2021. However, SG&A — as a percentage of gross profit — decreased from the prior-year level. Encouragingly, pretax and net profit margins improved from the year-ago levels.Bringing in pleasant news for investors, the board approved a dividend increase of 12.9% from the prior payout. Quarterly dividend of 35 cents a share will be payable on May 21 to shareholders of record as of May 7, 2021.Lithia had cash and cash equivalents of $170.3 million as of Mar 31, 2021. Long-term debt was $2,124 million, marking an increase from $2,064.7 million as of Dec 31, 2020.Lithia — which shares space with other auto retailers like Asbury Automotive Group Inc. ABG, Americas CarMart Inc. CRMT and Group 1 Automotive Inc. GPI — currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks' Top Picks to Cash in on Artificial IntelligenceIn 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Americas CarMart, Inc. (CRMT): Free Stock Analysis Report Lithia Motors, Inc. (LAD): Free Stock Analysis Report Group 1 Automotive, Inc. (GPI): Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research