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Sonic (SAH) Q3 Earnings Surpass Estimates, Dividend Hiked
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Sonic Automotive, Inc. (SAH - Free Report) registered third-quarter 2023 adjusted earnings per share of $2.02, outpacing the Zacks Consensus Estimate of $1.80. The bottom line, however, fell 9.4% from the $2.23 per share reported in the year-ago quarter.
Total revenues amounted to $3,644 million, marking an increase of 5.7% from the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of $3,572 million.
Sonic Automotive, Inc. Price, Consensus and EPS Surprise
In the reported quarter, revenues from retail new vehicles increased 15% year over year to $1,573.5 million, outpacing the Zacks Consensus Estimate of $1,573 million. Gross profit totaled $131.4 million, falling 19% year over year but surpassing the Zacks Consensus Estimate of $126 million. Same-store unit sales volume rose 12% to 26,727. Gross profit per unit dipped 30% to $4,678.
Revenues from the sales of used vehicles went down 1% from the prior-year level to $1,340.4 million, surpassing the Zacks Consensus Estimate of $1,221 million. Gross profit totaled $52.8 million, rising 3.7% year over year and beating the Zacks Consensus Estimate of $42.96 million. Same-store unit sales decreased 3% to 25,371 in the quarter under review. Gross profit per unit declined 2% to $1,668.
The EchoPark segment reported quarterly revenues of $626.7 million, marking a 6% increase from the year-ago figure and surpassing the Zacks Consensus Estimate of $568 million. Its stores sold 19,050 used vehicle units, up 25% on a year-over-year basis. The segment reported a gross profit of $52.8 million, up 22% from the previous quarter on a year-over-year basis, surpassing the Zacks Consensus Estimate of $40.23 million.
Wholesale vehicle revenues fell 31% on a year-over-year basis to $79.3 million, outpacing the Zacks Consensus Estimate of $76 million. Revenues from parts, services and collision repair were up 11% to $453.4 million, crossing the Zacks Consensus Estimate of $431 million. Finance, insurance and other revenues were $173.7 million, up 3% from the corresponding quarter of 2022 and topping the Zacks Consensus Estimate of $163 million.
Financials
Sonic had cash and cash equivalents of $34.6 million as of Sep 30, 2023, down from $229.2 million as of Dec 31, 2022. Long-term debt was $1,623.1 million, falling from $1,672.2 million recorded on Dec 31, 2022.
Selling, general and administrative expenses rose 3% year over year to $409.6 million in the quarter. Sonic hiked the quarterly cash dividend to 30 cents, up 3.4% from the previous quarter. The dividend is payable on Jan 12, 2024, to all stockholders of record as of Dec 15, 2023. In the reported quarter, Sonic repurchased approximately 1.7 million shares for about $86.7 million. As of Sep 30, 2023, Sonic had $286.8 million remaining under its share buyback authorization.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.6% and 27.6%, respectively. The EPS estimates for 2023 and 2024 have increased by 4 cents and 21 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for HMC’s 2023 sales and earnings suggests year-over-year improvements of 7.7% and 29.4%, respectively. The EPS estimate for 2023 has moved up by a cent in the past 30 days. The EPS estimate for 2024 increased by a cent in the past seven days.
The Zacks Consensus Estimate for MBLY’s 2023 sales indicates year-over-year rises of 12.3%. The EPS estimate for 2023 increased by a cent in the past seven days. The EPS estimates for 2023 and 2024 increased by 3 cents and 2 cents, respectively, in the past 90 days.
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Sonic (SAH) Q3 Earnings Surpass Estimates, Dividend Hiked
Sonic Automotive, Inc. (SAH - Free Report) registered third-quarter 2023 adjusted earnings per share of $2.02, outpacing the Zacks Consensus Estimate of $1.80. The bottom line, however, fell 9.4% from the $2.23 per share reported in the year-ago quarter.
Total revenues amounted to $3,644 million, marking an increase of 5.7% from the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of $3,572 million.
Sonic Automotive, Inc. Price, Consensus and EPS Surprise
Sonic Automotive, Inc. price-consensus-eps-surprise-chart | Sonic Automotive, Inc. Quote
Quarter in Detail
In the reported quarter, revenues from retail new vehicles increased 15% year over year to $1,573.5 million, outpacing the Zacks Consensus Estimate of $1,573 million. Gross profit totaled $131.4 million, falling 19% year over year but surpassing the Zacks Consensus Estimate of $126 million. Same-store unit sales volume rose 12% to 26,727. Gross profit per unit dipped 30% to $4,678.
Revenues from the sales of used vehicles went down 1% from the prior-year level to $1,340.4 million, surpassing the Zacks Consensus Estimate of $1,221 million. Gross profit totaled $52.8 million, rising 3.7% year over year and beating the Zacks Consensus Estimate of $42.96 million. Same-store unit sales decreased 3% to 25,371 in the quarter under review. Gross profit per unit declined 2% to $1,668.
The EchoPark segment reported quarterly revenues of $626.7 million, marking a 6% increase from the year-ago figure and surpassing the Zacks Consensus Estimate of $568 million. Its stores sold 19,050 used vehicle units, up 25% on a year-over-year basis. The segment reported a gross profit of $52.8 million, up 22% from the previous quarter on a year-over-year basis, surpassing the Zacks Consensus Estimate of $40.23 million.
Wholesale vehicle revenues fell 31% on a year-over-year basis to $79.3 million, outpacing the Zacks Consensus Estimate of $76 million. Revenues from parts, services and collision repair were up 11% to $453.4 million, crossing the Zacks Consensus Estimate of $431 million. Finance, insurance and other revenues were $173.7 million, up 3% from the corresponding quarter of 2022 and topping the Zacks Consensus Estimate of $163 million.
Financials
Sonic had cash and cash equivalents of $34.6 million as of Sep 30, 2023, down from $229.2 million as of Dec 31, 2022. Long-term debt was $1,623.1 million, falling from $1,672.2 million recorded on Dec 31, 2022.
Selling, general and administrative expenses rose 3% year over year to $409.6 million in the quarter. Sonic hiked the quarterly cash dividend to 30 cents, up 3.4% from the previous quarter. The dividend is payable on Jan 12, 2024, to all stockholders of record as of Dec 15, 2023. In the reported quarter, Sonic repurchased approximately 1.7 million shares for about $86.7 million. As of Sep 30, 2023, Sonic had $286.8 million remaining under its share buyback authorization.
Zacks Rank & Key Picks
SAH currently carries a Zacks Rank #3 (Hold).
Some top-ranked players in the auto space are Toyota Motor (TM - Free Report) , Honda Motor Co., Ltd. (HMC - Free Report) and Mobileye Global Inc. (MBLY - Free Report) , all sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.6% and 27.6%, respectively. The EPS estimates for 2023 and 2024 have increased by 4 cents and 21 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for HMC’s 2023 sales and earnings suggests year-over-year improvements of 7.7% and 29.4%, respectively. The EPS estimate for 2023 has moved up by a cent in the past 30 days. The EPS estimate for 2024 increased by a cent in the past seven days.
The Zacks Consensus Estimate for MBLY’s 2023 sales indicates year-over-year rises of 12.3%. The EPS estimate for 2023 increased by a cent in the past seven days. The EPS estimates for 2023 and 2024 increased by 3 cents and 2 cents, respectively, in the past 90 days.