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Sonic Automotive (SAH) Q1 Earnings in Line with Estimates
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Sonic Automotive Inc. (SAH - Free Report) recorded adjusted earnings per share of 23 cents in first-quarter 2017, down from 39 cents recorded in the year-ago quarter. Earnings were on par with the Zacks Consensus Estimate.
Adjusted net income was $10.3 million, compared with $18.2 million in the first quarter of 2016. Loss from continuing operations on a reported basis was $20 million or breakeven per share, compared to earnings of $14.5 million or 31 cents in the prior-year quarter.
Total revenue in the reported quarter increased 2.7% to $2,287.8 million. The figure beat the Zacks Consensus Estimate of $2,285.4 million.
Revenues from new vehicles inched up 0.9% year over year to $1.17 billion, while that from used vehicles increased 6% to $634.5 million in the quarter. Wholesale vehicle revenues rose 4.3% to $46.3 million. Revenues from parts, service and collision repair increased 1.7% to $352 million, while finance, insurance and other revenues grew 2.2% to $83.1 million.
Gross profit increased to $350.3 million in the reported quarter from $345.2 million a year ago. Selling, general and administrative expenses increased to $292.2 million from $284.4 million in the year-ago quarter. The company reported operating income of $36.4 million compared with $42.3 million in the first quarter of 2016.
Shares of the company rose 0.2% to $20.70 on Apr 26 on record first quarter gross profit and higher year over year revenues.
Dividend Update
The board of directors at Sonic Automotive announced a quarterly dividend of 5 cents per share. The dividend will be paid on Jun 15, 2017, to shareholders on record as of Jul 14.
Sonic Automotive, Inc. Price, Consensus and EPS Surprise
The company launched One Sonic One Experience in a BMW store during the quarter. The store has ramped up well each month since the installation in Jan 2017.
The company plans to open an Audi store in Pensacola, FL, in the second quarter of 2017. In addition, Sonic Automotive plans to expand in Texas, mainly in the San Antonio market. It will be opening at least three stores this year.
2017 Outlook
Sonic Automotive kept its projections unchanged from the previously provided guidance. The company expects earnings per share in 2017 in the band of $2.00–$2.10. Earnings include the projected EchoPark results. However, the company expects to incur a loss of 23–27 cents in 2017 due to EchoPark.
Price Performance
Sonic Automotive has underperformed the Zacks categorized Retail/Wholesale Auto/Truck industry in the last three months. During this period, the company’s share price decreased 9.2%, while the industry lost 8.4%. The company is facing weakness in its most profitable market and is exposed to foreign exchange risks.
Zacks Rank & Key Picks
Sonic Automotive currently carries a Zacks Rank #4 (Sell).
Oshkoshhas an expected long-term growth rate of 10.6%.
Fox Factory has an expected long-term growth rate of around 16.1%.
The expected long-term growth rate for Lear is pegged at 8.9%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market.See these critical buys and sells free >>
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Sonic Automotive (SAH) Q1 Earnings in Line with Estimates
Sonic Automotive Inc. (SAH - Free Report) recorded adjusted earnings per share of 23 cents in first-quarter 2017, down from 39 cents recorded in the year-ago quarter. Earnings were on par with the Zacks Consensus Estimate.
Adjusted net income was $10.3 million, compared with $18.2 million in the first quarter of 2016. Loss from continuing operations on a reported basis was $20 million or breakeven per share, compared to earnings of $14.5 million or 31 cents in the prior-year quarter.
Total revenue in the reported quarter increased 2.7% to $2,287.8 million. The figure beat the Zacks Consensus Estimate of $2,285.4 million.
Revenues from new vehicles inched up 0.9% year over year to $1.17 billion, while that from used vehicles increased 6% to $634.5 million in the quarter. Wholesale vehicle revenues rose 4.3% to $46.3 million. Revenues from parts, service and collision repair increased 1.7% to $352 million, while finance, insurance and other revenues grew 2.2% to $83.1 million.
Gross profit increased to $350.3 million in the reported quarter from $345.2 million a year ago. Selling, general and administrative expenses increased to $292.2 million from $284.4 million in the year-ago quarter. The company reported operating income of $36.4 million compared with $42.3 million in the first quarter of 2016.
Shares of the company rose 0.2% to $20.70 on Apr 26 on record first quarter gross profit and higher year over year revenues.
Dividend Update
The board of directors at Sonic Automotive announced a quarterly dividend of 5 cents per share. The dividend will be paid on Jun 15, 2017, to shareholders on record as of Jul 14.
Sonic Automotive, Inc. Price, Consensus and EPS Surprise
Sonic Automotive, Inc. Price, Consensus and EPS Surprise | Sonic Automotive, Inc. Quote
Business Update
The company launched One Sonic One Experience in a BMW store during the quarter. The store has ramped up well each month since the installation in Jan 2017.
The company plans to open an Audi store in Pensacola, FL, in the second quarter of 2017. In addition, Sonic Automotive plans to expand in Texas, mainly in the San Antonio market. It will be opening at least three stores this year.
2017 Outlook
Sonic Automotive kept its projections unchanged from the previously provided guidance. The company expects earnings per share in 2017 in the band of $2.00–$2.10. Earnings include the projected EchoPark results. However, the company expects to incur a loss of 23–27 cents in 2017 due to EchoPark.
Price Performance
Sonic Automotive has underperformed the Zacks categorized Retail/Wholesale Auto/Truck industry in the last three months. During this period, the company’s share price decreased 9.2%, while the industry lost 8.4%. The company is facing weakness in its most profitable market and is exposed to foreign exchange risks.
Zacks Rank & Key Picks
Sonic Automotive currently carries a Zacks Rank #4 (Sell).
Better-ranked companies in the auto space include Oshkosh Corporation (OSK - Free Report) , Fox Factory Holding Corp (FOXF - Free Report) and Lear Corporation (LEA - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oshkoshhas an expected long-term growth rate of 10.6%.
Fox Factory has an expected long-term growth rate of around 16.1%.
The expected long-term growth rate for Lear is pegged at 8.9%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>