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Sonic Automotive (SAH) Q4 Earnings Beat, Revenues Miss

Zacks Equity Research

Sonic Automotive, Inc. SAH registered adjusted earnings per share of 76 cents in fourth-quarter 2018, beating the Zacks Consensus Estimate of 75 cents. However, the bottom line was lower than the fourth-quarter 2017 figure of 84 cents per share.

Total revenues in the reported quarter were $2.57 billion, down from the prior-year quarter figure of $2.67 billion. Further, revenues missed the Zacks Consensus Estimate of $2.69 billion.

During the reported quarter, revenues from the sale of total new vehicles decreased 11.2% year over year to $1.32 billion. Revenues from used vehicles rose 10.2% to $755.9 million. Wholesale vehicle revenues rose 22% to $49.9 million.

Revenues from parts, services and collision repair decreased 4.5% to $339.3 million while finance, insurance and other revenues rose 9.4% to $109.6 million.

In fourth-quarter 2018, gross profit decreased to $370.7 million from $384.1 million recorded a year ago. Selling, general and administrative expenses decreased to $273.9 million from $277.6 million in the year-ago quarter. The company reported operating income of $58.7 million compared with $77.2 million in the year-ago quarter.

In fourth-quarter 2018, EchoPark stores retailed 8,762 units, up 94.9% on a year-over-year basis.

2018 Results

For 2018, adjusted earnings per share were $1.79, down from the 2017 figure of $1.85.

Revenues were $9.95 billion in 2018, up from the 2017 figure of $9.87 billion.

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 67% rise in the quarterly dividend to 10 cents per share. The dividend will be paid on Apr 15, 2019, to shareholders of record as of Mar 15, 2019.

Zacks Rank & Stocks to Consider

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

A few better-ranked stocks in the auto space are Garrett Motion Inc. GTX, Oshkosh Corp. OSK and General Motors Company GM. While Garrett Motion and Oshkosh currently sport a Zacks Rank #1 (Strong Buy), General Motors carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Garrett Motion has an expected long-term growth rate of 25.5%. Over the past three months, shares of the company have risen 39%.

Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have surged 19.9%.

General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 12.4%.

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