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Why Is Sonic Automotive (SAH) Up 4.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for Sonic Automotive (SAH - Free Report) . Shares have added about 4.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sonic Automotive due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Sonic's Q2 Earnings Beat Estimate
Sonic reported second-quarter 2024 adjusted earnings per share of $1.47, which surpassed 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.
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% on a yearly basis.
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 yearly 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Sonic Automotive has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Sonic Automotive has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Sonic Automotive is part of the Zacks Automotive - Retail and Whole Sales industry. Over the past month, Group 1 Automotive (GPI - Free Report) , a stock from the same industry, has gained 8.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
Group 1 Automotive reported revenues of $4.7 billion in the last reported quarter, representing a year-over-year change of +3%. EPS of $9.80 for the same period compares with $11.73 a year ago.
For the current quarter, Group 1 Automotive is expected to post earnings of $10.34 per share, indicating a change of -14.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.9% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Group 1 Automotive. Also, the stock has a VGM Score of C.
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Why Is Sonic Automotive (SAH) Up 4.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Sonic Automotive (SAH - Free Report) . Shares have added about 4.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sonic Automotive due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Sonic's Q2 Earnings Beat Estimate
Sonic reported second-quarter 2024 adjusted earnings per share of $1.47, which surpassed 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.
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% on a yearly basis.
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 yearly 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Sonic Automotive has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Sonic Automotive has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Sonic Automotive is part of the Zacks Automotive - Retail and Whole Sales industry. Over the past month, Group 1 Automotive (GPI - Free Report) , a stock from the same industry, has gained 8.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
Group 1 Automotive reported revenues of $4.7 billion in the last reported quarter, representing a year-over-year change of +3%. EPS of $9.80 for the same period compares with $11.73 a year ago.
For the current quarter, Group 1 Automotive is expected to post earnings of $10.34 per share, indicating a change of -14.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.9% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Group 1 Automotive. Also, the stock has a VGM Score of C.