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Sonic (SAH) Q4 Earnings Beat, EchoPark Unit Sales Jump Y/Y
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Sonic Automotive, Inc. (SAH - Free Report) registered fourth-quarter 2020 adjusted earnings per share of $1.50 per share, which beat the Zacks Consensus Estimate of $1.43. Higher-than-expected sales and gross profit from new vehicle units led to the outperformance. The bottom line was also higher than 97 cents per share reported in the year-ago quarter. Total revenues amounted to $2,798.5 million, up 1.8% from the prior-year figure. However, revenues missed the Zacks Consensus Estimate of $2,830 million.
Sonic Automotive, Inc. Price, Consensus and EPS Surprise
For the reported quarter, revenues from the sale of new vehicles fell 2.7% year over year to $1,323.4 million but surpassed the consensus mark of $1,303 million. Unit sales volume contracted 9.9% year on year to 27,566, while gross profit per unit surged 32.4% to $2,924. Gross profit totaled $80.6 million, outpacing the consensus mark of $72 million.
Revenues from the sale of used vehicles increased 10.4% from the prior-year level to $959.8 million. Unit sales contracted from 27,099 in the prior-year quarter to 25,490 for the quarter under review. Gross profit per unit dipped 23.1% year over year to $1,014.
For the quarter under review, the EchoPark segment recorded revenues of $386.9 million, reflecting a 25.4% uptick from the year-ago figure. Its stores sold 16,845 units, up 16.7% on a year-over-year basis. The segment’s gross profit climbed 10.6% from the prior-year quarter to $26.1 million.
Wholesale vehicle revenues rose 27% on a year-over-year basis to $59.2 million. Revenues from parts, services and collision repair fell 7.9% year over year to $319.1 million. Finance, insurance and other revenues came in at $137 million, up from $125.5 million recorded in the corresponding quarter of 2019.
Selling, general and administrative expenses inched up 0.7% year over year to $259 million for the quarter under review. The board of directors announced a quarterly dividend of 10 cents per share, which will be paid out on Apr 15, 2021 to shareholders of record on Mar 15, 2021. As of Sep 30, Sonic — whose peers include Lithia Motors (LAD - Free Report) , AutoNation (AN - Free Report) and Group 1 Automotive (GPI - Free Report) — had $170.3 million of cash and cash equivalents on hand. Long-term debt summed $720.1 million. Sonic currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Sonic (SAH) Q4 Earnings Beat, EchoPark Unit Sales Jump Y/Y
Sonic Automotive, Inc. (SAH - Free Report) registered fourth-quarter 2020 adjusted earnings per share of $1.50 per share, which beat the Zacks Consensus Estimate of $1.43. Higher-than-expected sales and gross profit from new vehicle units led to the outperformance. The bottom line was also higher than 97 cents per share reported in the year-ago quarter. Total revenues amounted to $2,798.5 million, up 1.8% from the prior-year figure. However, revenues missed the Zacks Consensus Estimate of $2,830 million.
Sonic Automotive, Inc. Price, Consensus and EPS Surprise
Sonic Automotive, Inc. price-consensus-eps-surprise-chart | Sonic Automotive, Inc. Quote
Key Takeaways
For the reported quarter, revenues from the sale of new vehicles fell 2.7% year over year to $1,323.4 million but surpassed the consensus mark of $1,303 million. Unit sales volume contracted 9.9% year on year to 27,566, while gross profit per unit surged 32.4% to $2,924. Gross profit totaled $80.6 million, outpacing the consensus mark of $72 million.
Revenues from the sale of used vehicles increased 10.4% from the prior-year level to $959.8 million. Unit sales contracted from 27,099 in the prior-year quarter to 25,490 for the quarter under review. Gross profit per unit dipped 23.1% year over year to $1,014.
For the quarter under review, the EchoPark segment recorded revenues of $386.9 million, reflecting a 25.4% uptick from the year-ago figure. Its stores sold 16,845 units, up 16.7% on a year-over-year basis. The segment’s gross profit climbed 10.6% from the prior-year quarter to $26.1 million.
Wholesale vehicle revenues rose 27% on a year-over-year basis to $59.2 million. Revenues from parts, services and collision repair fell 7.9% year over year to $319.1 million. Finance, insurance and other revenues came in at $137 million, up from $125.5 million recorded in the corresponding quarter of 2019.
Selling, general and administrative expenses inched up 0.7% year over year to $259 million for the quarter under review. The board of directors announced a quarterly dividend of 10 cents per share, which will be paid out on Apr 15, 2021 to shareholders of record on Mar 15, 2021. As of Sep 30, Sonic — whose peers include Lithia Motors (LAD - Free Report) , AutoNation (AN - Free Report) and Group 1 Automotive (GPI - Free Report) — had $170.3 million of cash and cash equivalents on hand. Long-term debt summed $720.1 million. Sonic currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>