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Sonic Automotive (SAH) Q2 Earnings & Revenues Miss Estimates
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Sonic Automotive Inc. (SAH - Free Report) registered adjusted earnings per share of 40 cents in second-quarter 2017 compared with 50 cents in the year-ago quarter. Earnings missed the Zacks Consensus Estimate of 48 cents per share.
Total revenue in the reported quarter increased 1% to $2.41 billion. The figure, however, missed the Zacks Consensus Estimate of $2.44 billion.
Revenues from total new vehicles declined 0.9% year over year to $1.28 billion, while that from used vehicles increased 3.2% to $641.9 million in the quarter. Wholesale vehicle revenues rose 46.6% to $40.8 million. Revenues from parts, service and collision repair increased 2.8% to $361.1 million, while finance, insurance and other revenues grew 3.4% to $86.9 million.
Gross profit increased to $360.6 million in the reported quarter from $353.3 million a year ago. Selling, general and administrative expenses increased to $293.9 million from $277.2 million in the year-ago quarter. The company reported operating income of $42.2 million compared with $57 million in the year-ago quarter.
Dividend Update
The board of directors at Sonic Automotive announced a quarterly dividend of 5 cents per share. The dividend will be paid on Oct 13, 2017, to shareholders on record as of Sep15.
Business Update
During the quarter, the company’s EchoPark stores retailed 2,049 units, up over 80% year over year. Also, the company has plans of accelerated expansion of another 15 EchoPark stores.
During second-quarter 2017, the company opened a new Audi store in Pensacola, Florida and the sixth EchoPark store in Colorado.
2017 Outlook
Sonic Automotive expects adjusted earnings per share in 2017 in the band of $1.85–$1.95 per share.
Zacks Rank & Key Picks
Sonic Automotive currently carries a Zacks Rank #5 (Strong Sell).
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Sonic Automotive (SAH) Q2 Earnings & Revenues Miss Estimates
Sonic Automotive Inc. (SAH - Free Report) registered adjusted earnings per share of 40 cents in second-quarter 2017 compared with 50 cents in the year-ago quarter. Earnings missed the Zacks Consensus Estimate of 48 cents per share.
Total revenue in the reported quarter increased 1% to $2.41 billion. The figure, however, missed the Zacks Consensus Estimate of $2.44 billion.
Revenues from total new vehicles declined 0.9% year over year to $1.28 billion, while that from used vehicles increased 3.2% to $641.9 million in the quarter. Wholesale vehicle revenues rose 46.6% to $40.8 million. Revenues from parts, service and collision repair increased 2.8% to $361.1 million, while finance, insurance and other revenues grew 3.4% to $86.9 million.
Gross profit increased to $360.6 million in the reported quarter from $353.3 million a year ago. Selling, general and administrative expenses increased to $293.9 million from $277.2 million in the year-ago quarter. The company reported operating income of $42.2 million compared with $57 million in the year-ago quarter.
Dividend Update
The board of directors at Sonic Automotive announced a quarterly dividend of 5 cents per share. The dividend will be paid on Oct 13, 2017, to shareholders on record as of Sep15.
Business Update
During the quarter, the company’s EchoPark stores retailed 2,049 units, up over 80% year over year. Also, the company has plans of accelerated expansion of another 15 EchoPark stores.
During second-quarter 2017, the company opened a new Audi store in Pensacola, Florida and the sixth EchoPark store in Colorado.
2017 Outlook
Sonic Automotive expects adjusted earnings per share in 2017 in the band of $1.85–$1.95 per share.
Zacks Rank & Key Picks
Sonic Automotive currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked companies in the auto space are Allison Transmission Holdings (ALSN - Free Report) , Volkswagen AG and Daimler AG , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has expected long-term growth rate of 11%.
Volkswagen has expected growth rate of around 17.3% in the long run.
Daimler has expected long-term growth rate of 2.8%.
Sonic Automotive, Inc. Price and Consensus
Sonic Automotive, Inc. Price and Consensus | Sonic Automotive, Inc. Quote
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>