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Sonic Automotive (SAH) Q1 Earnings Top, Revenues Lag Estimates

Zacks Equity Research

Sonic Automotive, Inc. SAH registered adjusted earnings per share of 39 cents in first-quarter 2019, beating the Zacks Consensus Estimate of 22 cents. However, the bottom line was lower than the first-quarter 2018 figure of 26 cents per share.

Total revenues in the reported quarter were $2.39 billion, up from the prior-year quarter figure of $2.40 billion. However, revenues missed the Zacks Consensus Estimate of $2.41 billion.

During the reported quarter, revenues from the sale of total new vehicles decreased 9.7% year over year to $1.06 billion. Revenues from the sale of total used vehicles rose 15.7% to $820.4 million. Wholesale vehicle revenues declined 16.3% to $54.8 million.

Revenues from parts, services and collision repair decreased 2.9% to $341.4 million while finance, insurance and other revenues rose 13.4% to $106.2 million.

In first-quarter 2019, gross profit increased to $359 million from $352.5 million recorded a year ago. Selling, general and administrative expenses decreased to $247 million from $304.9 million in the year-ago quarter. The company reported operating income of $87.3 million compared with $20.2 million in the year-ago quarter.

In first-quarter 2019, EchoPark stores retailed 11,051 units, up 100.3% on a year-over-year basis.

Sonic Automotive, Inc. Price, Consensus and EPS Surprise

 

Sonic Automotive, Inc. Price, Consensus and EPS Surprise | Sonic Automotive, Inc. Quote

Dividend & Share Repurchase

The board of directors of Sonic Automotive announced a quarterly dividend of 10 cents per share. The dividend will be paid on Jul 15, 2019, to shareholders of record as of Jun 14.

Zacks Rank & Stocks to Consider

Currently, Sonic Automotive has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader auto sector are Geely Automobile Holdings Ltd. GELYY, PACCAR Inc. PCAR and Fox Factory Holding Corp. FOXF. While Geely currently sports a Zacks Rank #1 (Strong Buy), PACCAR and Fox Factory currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Geely Automobile has an expected long-term growth rate of 7%. Share price of the company has increased 25.6% in the past three months.

PACCAR has an expected long-term growth rate of 8.4%. Over the past three months, shares of the company have gained 9.6%.

Fox Factory has an expected long-term growth rate of 5%. Shares of the company have gained 31.7% in the past three months.

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