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Sonic Automotive (SAH) Q2 Earnings Beat Estimates, Down Y/Y

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Sonic Automotive (SAH) Q2 Earnings Beat Estimates, Down Y/Y

In second-quarter 2018, Sonic Automotive's (SAH) EchoPark stores retail 7,459 units, up 35.2% sequentially.

Sonic Automotive, Inc. SAH registered adjusted earnings per share of 35 cents in second-quarter 2018, beating the Zacks Consensus Estimate of 34 cents. The bottom line was 40 cents per share in second-quarter 2017.

Total revenues in the reported quarter were $2.5 billion, up from the prior year-quarter figure by 4.2%. Revenues were almost in line with the Zacks Consensus Estimate.

During the reported quarter, revenues from the total new-vehicle sales decreased 2.8% year over year to $1.24 billion. Revenues from used vehicles rose 18.8% to $762.6 million. Wholesale vehicle revenues rose 31.8% to $53.7 million. Revenues from parts, services and collision repair decreased 4% to $346.8 million while finance, insurance and other revenues grew 19.8% to $104.1 million.

In second-quarter 2018, gross profit increased to $362.4 million from $360.6 million recorded a year ago. Selling, general and administrative expenses decreased to $277.5 million from $293.9 million in the year-ago quarter. The company reported operating income of $50.6 million compared with $42.2 million in the year-ago quarter.

In second-quarter 2018, EchoPark stores retailed 7,459 units, up 35.2% sequentially.

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 at Sonic Automotive announced a quarterly dividend of 6 cents per share. The dividend will be paid on Oct 15, 2018, to shareholders of record as of Sep 15, 2018.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the auto space are Oshkosh Corporation OSK, AB Volvo VLVLY and Fox Factory Holding Corp. FOXF, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oshkosh has an expected long-term growth rate of 18.3%. Over the past year, shares of the company have moved up 7.3%.

AB Volvo has an expected long-term growth rate of 15%. Over the past year, shares of the company have gained 2.4%.

Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 27.9% over the past year.

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Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report
 
Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report
 
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