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-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%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CarMax, Inc. (KMX) : Free Stock Analysis Report
Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
Copart, Inc. (CPRT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research