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Sonic Automotive (SAH) Q2 Earnings & Revenues Beat Estimates

Zacks Equity Research

Sonic Automotive, Inc. SAH registered adjusted earnings per share of 62 cents in second-quarter 2019, which beat the Zacks Consensus Estimate of 47 cents. Moreover, the bottom line increased from 35 cents reported in the year-ago quarter.

Total revenues in the reported quarter amounted to $2.6 billion, up from the prior-year quarter’s figure of $2.5 billion. Additionally, revenues surpassed the Zacks Consensus Estimate of $2.5 billion.

During the reported quarter, revenues from the sale of total new vehicles fell 2.7% year over year to $1.2 billion. Revenues from the sale of total used vehicles rose 16.1% to $885.6 million. Wholesale vehicle revenues declined 6.9% to $50 million on a year-over-year basis.

Revenues from parts, services and collision repair increased 2.5% year over year to $355.3 million. Finance, insurance and other revenues rose 13.7% on a year-over-year basis to $118.3 million.

In second-quarter 2019, gross profit increased to $381 million from $362.5 million in the year-ago quarter. Selling, general and administrative expenses increased to $294.5 million from $277 million in the year-ago quarter. The company recorded operating income of $62.9 million compared with $50.6 million in the year-ago quarter.

In the quarter under review, EchoPark stores retailed 12,587 units, up 68.7% on a year-over-year basis.

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 Oct 15, 2019, to shareholders of record as of Sep 13.

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

 

Zacks Rank & Other Stocks to Consider

Currently, Sonic Automotive has a Zacks Rank #2 (Buy).

Some other stocks in the auto space are Copart, Inc CPRT, CarMax, Inc KMX and Advance Auto Parts, Inc AAP. While Copart sports a Zacks Rank #1 (Strong Buy), CarMax and Advance Auto Parts carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have rallied 39%.

CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have moved up 19.4%.

Advance Auto Parts has an expected long-term growth rate of 11.6%. In the past year, shares of the company have returned 7.3%.

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