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Sonic (SAH) Stock Rises 7% Since Q2 Earnings Beat Estimates

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Shares of Sonic Automotive, Inc. (SAH - Free Report) have gained 7% since the company reported second-quarter 2024 results. Adjusted earnings per share of $1.47 beat the Zacks Consensus Estimate of $1.39 but fell 19.7% from the year-ago quarter’s figure.

Total revenues amounted to $3.45 billion, missing the Zacks Consensus Estimate of $3.55 billion and declining from the year-ago quarter’s figure of $3.65 billion.

Sonic Automotive, Inc. Price, Consensus and EPS Surprise

Sonic Automotive, Inc. Price, Consensus and EPS Surprise

Sonic Automotive, Inc. price-consensus-eps-surprise-chart | Sonic Automotive, Inc. Quote

Quarter in Detail

On a consolidated basis, revenues from sales of new vehicles, used vehicles and wholesale vehicles totaled $1.55 billion (down 3% year over year), $1.19 billion (down 9% year over year) and $71.3 million (down 22% year over year), respectively. Revenues from Parts, Service and Collison Repair remained flat at $444.1 million. Finance, Insurance and other revenues fell 2% year over year to $172.6 million. Total gross profit declined 5% to $539.1 million.

In the Franchised Dealerships segment, revenues from the sales of new vehicles, used vehicles and wholesale vehicles totaled $1.53 billion (down 3% year over year), $732.1 million (down 5% year over year) and $48.4 million (down 13% year over year), respectively. Revenues from Parts, Service and Collison Repair remained flat at $434.4 million. Finance, Insurance and other revenues fell 6% to $124.2 million. Same-store revenues from the Franchised Dealership segment fell 3% to roughly $2.89 billion. Same-store retail units of new and used vehicles came in at 52,165, up 1% year over year.

The EchoPark segment reported quarterly revenues of $517.3 million, marking a 14% decrease from the year-ago figure. Revenues comprised $448.9 million (down 14%) from used vehicle sales, $21.9 million (down 38%) from wholesale vehicle sales and $46.5 million (up 13%) from Finance, Insurance and Other. Its stores sold 16,641 and 2,593 used and wholesale vehicle units, down 3% and 20%, respectively, on a year-over-year basis. Same-store revenues from the EchoPark segment rose 10% to roughly $518.8 million. Same-store retail units of used and wholesale vehicles came in at 16,641 and 2,593, up 23% and 8%, respectively, on a year-over-year basis.

In the Powersports segment, revenues from the sales of new vehicles, used vehicles and wholesale vehicles totaled $21.7 million (down 13% year over year), $5.3 million (down 28% year over year) and $0.9 million (up 125% year over year), respectively. Revenues from Parts, Service and Collison Repair dropped 6% to $9.7 million. Finance, Insurance and other revenues remained flat on a year-over-year basis at $2 million. Same-store revenues from the Powersports segment declined 12% to $39.6 million. Same-store retail units of new and used vehicles came in at 1,193 and 522, down 15% and 24%, respectively, on a year-over-year basis.

Financials

In the second quarter, selling, general and administrative expenses remained flat year over year at $393 million. As of Jun 30, Sonic’s cash and cash equivalents amounted to $67.2 million. Long-term debt at the end of the quarter was $1.60 billion.

Sonic declared a quarterly cash dividend of 30 cents, which will be paid out on Oct 15, 2024, to stockholders of record as of Sep 13, 2024.

Zacks Rank & Key Picks

SAH currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , BYD Company Limited (BYDDY - Free Report) and Douglas Dynamics, Inc. (PLOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for DORM’s 2024 sales and earnings suggests a year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 20 cents and 22 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.11% and 14.73%, respectively. EPS estimates for 2024 and 2025 have improved 14 cents and 19 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for PLOW’s 2024 sales and earnings suggests year-over-year growth of 6.45% and 60.4%, respectively. EPS estimates for 2024 and 2025 have improved 15 cents and 2 cents, respectively, in the past 30 days.

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