Sonic Automotive, Inc. (SAH - Free Report) registered adjusted earnings per share of 40 cents in first-quarter 2020, beating the Zacks Consensus Estimate of 20 cents. Higher sales from the used vehicle unit led to outperformance. Moreover, the bottom line was a penny higher than 39 cents per share reported in the year-ago quarter on the back of solid performance from the EchoPark segment.
However, total revenues in the reported quarter amounted to $2,308 million, down 3.4% from the prior-year period. Further, revenues missed the Zacks Consensus Estimate of $2,325 million.
Key Takeaways
During the reported quarter, revenues from the sale of new vehicles fell 10% year over year to $959.5 million. Gross profit decreased to $45.4 million from $53.8 million recorded in the year-ago period.
Revenues from the sale of total used vehicles rose 3.6% from the prior-year quarter to $850 million. The metric also topped the consensus mark of $794 million. Unit sales rose from 38,463 a year ago to 40,024 in the quarter under review. While gross profit decreased 13.2% year over year to $32.1 million, the metric topped the Zacks Consensus Estimate of $31.7 million.
In the quarter under review, the EchoPark segment recorded revenues of $331.7 million, reflecting a 33% uptick from the year-ago figure. Its stores sold 13,986 units, up 27% on a year-over-year basis. The segment registered income of $2.1 million, unchanged from the year ago-quarter.
Wholesale vehicle revenues decreased 11.4% on a year-over-year basis to $48.5 million. Nonetheless, gross loss narrowed from $1.26 million in the year-ago quarter to $157,000.
Revenues from parts, services and collision repair fell 2% year over year to $334.7 million. Gross profit decreased $157.9 million in the quarter under review from $163.2 million in the year-ago period.
Finance, insurance and other revenues rose 8.5% on a year-over-year basis to $115.3 million.
Selling, general and administrative expenses increased to $282.2 million from $247.1 million in the year-ago quarter.
The board of directors announced a quarterly dividend of 10 cents per share, which will be paid on Jul 15, 2020 to shareholders of record on Jun 15, 2020. As of Apr 28, Sonic Automotive — whose peers include Lithia Motors (LAD - Free Report) , AutoNation (AN - Free Report) and Group 1 Automotive (GPI - Free Report) — had $304.0 million of cash and cash equivalents on hand.
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Sonic Automotive, Inc. (SAH - Free Report) registered adjusted earnings per share of 40 cents in first-quarter 2020, beating the Zacks Consensus Estimate of 20 cents. Higher sales from the used vehicle unit led to outperformance. Moreover, the bottom line was a penny higher than 39 cents per share reported in the year-ago quarter on the back of solid performance from the EchoPark segment.
However, total revenues in the reported quarter amounted to $2,308 million, down 3.4% from the prior-year period. Further, revenues missed the Zacks Consensus Estimate of $2,325 million.
Key Takeaways
During the reported quarter, revenues from the sale of new vehicles fell 10% year over year to $959.5 million. Gross profit decreased to $45.4 million from $53.8 million recorded in the year-ago period.
Revenues from the sale of total used vehicles rose 3.6% from the prior-year quarter to $850 million. The metric also topped the consensus mark of $794 million. Unit sales rose from 38,463 a year ago to 40,024 in the quarter under review. While gross profit decreased 13.2% year over year to $32.1 million, the metric topped the Zacks Consensus Estimate of $31.7 million.
In the quarter under review, the EchoPark segment recorded revenues of $331.7 million, reflecting a 33% uptick from the year-ago figure. Its stores sold 13,986 units, up 27% on a year-over-year basis. The segment registered income of $2.1 million, unchanged from the year ago-quarter.
Wholesale vehicle revenues decreased 11.4% on a year-over-year basis to $48.5 million. Nonetheless, gross loss narrowed from $1.26 million in the year-ago quarter to $157,000.
Revenues from parts, services and collision repair fell 2% year over year to $334.7 million. Gross profit decreased $157.9 million in the quarter under review from $163.2 million in the year-ago period.
Finance, insurance and other revenues rose 8.5% on a year-over-year basis to $115.3 million.
Selling, general and administrative expenses increased to $282.2 million from $247.1 million in the year-ago quarter.
The board of directors announced a quarterly dividend of 10 cents per share, which will be paid on Jul 15, 2020 to shareholders of record on Jun 15, 2020. As of Apr 28, Sonic Automotive — whose peers include Lithia Motors (LAD - Free Report) , AutoNation (AN - Free Report) and Group 1 Automotive (GPI - Free Report) — had $304.0 million of cash and cash equivalents on hand.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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