Sonic Automotive, Inc. (SAH - Free Report) registered third-quarter 2021 adjusted earnings per share of $1.96, which beat the Zacks Consensus Estimate of $1.86. Higher-than-expected sales from used and wholesale vehicle segments led to the outperformance. The bottom line was also higher than $1.29 per share reported in the year-ago quarter. Total revenues amounted to $3,072.8 million, increasing 20.6% from the prior-year figure and topping the Zacks Consensus Estimate of $3,059 million.
Key Takeaways
For the reported quarter, revenues from the sale of new vehicles rose 4.4% year over year to $1,146.9 million but missed the consensus mark of $1,229 million. Same-store unit sales volume inched down 5.1% year on year to 22,631 but gross profit per unit surged 93.2% to $5,051. Gross profit totaled $114.3 million, outpacing the consensus mark of $95 million.
Revenues from the sale of used vehicles surged 38.4% from the prior-year level to $1,309.5 million and topped the consensus mark of $1,272 million. Same-store unit sales increased from 26,084 in the prior-year period to 26,168 for the quarter under review. Gross profit per unit grew 31.9% year over year to $1,835. Gross profit totaled $47.8 million, outpacing the consensus mark of $32.4 million.
For the quarter under review, the EchoPark segment recorded revenues of $663.3 million, reflecting a 72.3% uptick from the year-ago figure. Its stores sold 25,102 units (with used-vehicle unit sales volume of 21,255), up 47% on a year-over-year basis. Meanwhile, the segment’s gross profit declined 11.6% from the prior-year quarter to $25.8 million.
Wholesale vehicle revenues soared 71.8% on a year-over-year basis to $97.1 million and beat the consensus mark of $69 million. Revenues from parts, services and collision repair were up 10.7% year over year to $355.2 million but fell short of the Zacks Consensus Estimate of $365 million. Finance, insurance and other revenues came in at $164.1 million, up from $126.8 million recorded in the corresponding quarter of 2020. The metric, however, lagged the consensus estimate of $173 million.
Selling, general and administrative expenses flared up 39.2% year over year to $321.4 million for the quarter under review. The board of directors announced a quarterly dividend of 12 cents per share, which will be paid out on Jan 14, 2022 to shareholders of record on Dec 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 $220.1 million of cash and cash equivalents on hand. Long-term debt summed $637.7 million. Sonic currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Sonic Automotive, Inc. (SAH - Free Report) registered third-quarter 2021 adjusted earnings per share of $1.96, which beat the Zacks Consensus Estimate of $1.86. Higher-than-expected sales from used and wholesale vehicle segments led to the outperformance. The bottom line was also higher than $1.29 per share reported in the year-ago quarter. Total revenues amounted to $3,072.8 million, increasing 20.6% from the prior-year figure and topping the Zacks Consensus Estimate of $3,059 million.
Key Takeaways
For the reported quarter, revenues from the sale of new vehicles rose 4.4% year over year to $1,146.9 million but missed the consensus mark of $1,229 million. Same-store unit sales volume inched down 5.1% year on year to 22,631 but gross profit per unit surged 93.2% to $5,051. Gross profit totaled $114.3 million, outpacing the consensus mark of $95 million.
Revenues from the sale of used vehicles surged 38.4% from the prior-year level to $1,309.5 million and topped the consensus mark of $1,272 million. Same-store unit sales increased from 26,084 in the prior-year period to 26,168 for the quarter under review. Gross profit per unit grew 31.9% year over year to $1,835. Gross profit totaled $47.8 million, outpacing the consensus mark of $32.4 million.
For the quarter under review, the EchoPark segment recorded revenues of $663.3 million, reflecting a 72.3% uptick from the year-ago figure. Its stores sold 25,102 units (with used-vehicle unit sales volume of 21,255), up 47% on a year-over-year basis. Meanwhile, the segment’s gross profit declined 11.6% from the prior-year quarter to $25.8 million.
Wholesale vehicle revenues soared 71.8% on a year-over-year basis to $97.1 million and beat the consensus mark of $69 million. Revenues from parts, services and collision repair were up 10.7% year over year to $355.2 million but fell short of the Zacks Consensus Estimate of $365 million. Finance, insurance and other revenues came in at $164.1 million, up from $126.8 million recorded in the corresponding quarter of 2020. The metric, however, lagged the consensus estimate of $173 million.
Selling, general and administrative expenses flared up 39.2% year over year to $321.4 million for the quarter under review. The board of directors announced a quarterly dividend of 12 cents per share, which will be paid out on Jan 14, 2022 to shareholders of record on Dec 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 $220.1 million of cash and cash equivalents on hand. Long-term debt summed $637.7 million. Sonic currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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