We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sonic (SAH) Q2 Earnings Beat Estimates, EchoPark Sales Surge
Read MoreHide Full Article
Sonic Automotive, Inc. (SAH - Free Report) registered second-quarter 2020 adjusted earnings per share of 64 cents, which beat the Zacks Consensus Estimate of 31 cents. Higher-than-expected sales from the used vehicle unit led to outperformance. Precisely, used vehicle sales came in at around $809 million, surpassing the consensus mark of $542 million. Moreover, the bottom line was higher than 62 cents per share reported in the year-ago quarter on the back of solid performance from the EchoPark segment.
However, total revenues for the reported quarter amounted to $2,111.9 million, down 19.2% from the prior-year period. Further, revenues missed the Zacks Consensus Estimate of $2,227 million.
Sonic Automotive, Inc. Price, Consensus and EPS Surprise
For the reported quarter, revenues from the sale of new vehicles fell 25.3% year over year to $900 million. Gross profit decreased to $45.4 million from $56.4 million recorded in the year-ago period.
Revenues from the sale of used vehicles declined 8.7% from the prior-year quarter to $808.8 million. Unit sales contracted from 28,871 a year ago to 23,973 in the quarter under review. Gross profit decreased 18.8% year over year to $30.4 million.
For the quarter under review, the EchoPark segment recorded revenues of $315.3 million, reflecting an 8.1% uptick from the year-ago figure. Its stores sold 14,661 units, up 2.7% on a year-over-year basis. The segment registered an income of $2.57 million, up 52.2% from the year ago-quarter.
Wholesale vehicle revenues decreased 34.8% on a year-over-year basis to $28.5 million. Nonetheless, gross loss narrowed from $670,000 in the year-ago quarter to $357,000.
Revenues from parts, services and collision repair fell 27.4% year over year to $252 million. Gross profit decreased to $124.5 million for the quarter under review from $170.7 million in the year-ago period.
Finance, insurance and other revenues slid 10.2% on a year-over-year basis to $80.4 million.
Selling, general and administrative expenses decreased to $230.4 million from $294.5 million in the year-ago quarter.
The board of directors announced a quarterly dividend of 10 cents per share, which will be paid on Oct 15, 2020 to shareholders of record on Sep 15, 2020. As of Apr 28, Sonic — whose peers include Lithia Motors (LAD - Free Report) , AutoNation (AN - Free Report) and Group 1 Automotive (GPI - Free Report) — had $115.7 million of cash and cash equivalents on hand. Sonic currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Sonic (SAH) Q2 Earnings Beat Estimates, EchoPark Sales Surge
Sonic Automotive, Inc. (SAH - Free Report) registered second-quarter 2020 adjusted earnings per share of 64 cents, which beat the Zacks Consensus Estimate of 31 cents. Higher-than-expected sales from the used vehicle unit led to outperformance. Precisely, used vehicle sales came in at around $809 million, surpassing the consensus mark of $542 million. Moreover, the bottom line was higher than 62 cents per share reported in the year-ago quarter on the back of solid performance from the EchoPark segment.
However, total revenues for the reported quarter amounted to $2,111.9 million, down 19.2% from the prior-year period. Further, revenues missed the Zacks Consensus Estimate of $2,227 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 25.3% year over year to $900 million. Gross profit decreased to $45.4 million from $56.4 million recorded in the year-ago period.
Revenues from the sale of used vehicles declined 8.7% from the prior-year quarter to $808.8 million. Unit sales contracted from 28,871 a year ago to 23,973 in the quarter under review. Gross profit decreased 18.8% year over year to $30.4 million.
For the quarter under review, the EchoPark segment recorded revenues of $315.3 million, reflecting an 8.1% uptick from the year-ago figure. Its stores sold 14,661 units, up 2.7% on a year-over-year basis. The segment registered an income of $2.57 million, up 52.2% from the year ago-quarter.
Wholesale vehicle revenues decreased 34.8% on a year-over-year basis to $28.5 million. Nonetheless, gross loss narrowed from $670,000 in the year-ago quarter to $357,000.
Revenues from parts, services and collision repair fell 27.4% year over year to $252 million. Gross profit decreased to $124.5 million for the quarter under review from $170.7 million in the year-ago period.
Finance, insurance and other revenues slid 10.2% on a year-over-year basis to $80.4 million.
Selling, general and administrative expenses decreased to $230.4 million from $294.5 million in the year-ago quarter.
The board of directors announced a quarterly dividend of 10 cents per share, which will be paid on Oct 15, 2020 to shareholders of record on Sep 15, 2020. As of Apr 28, Sonic — whose peers include Lithia Motors (LAD - Free Report) , AutoNation (AN - Free Report) and Group 1 Automotive (GPI - Free Report) — had $115.7 million of cash and cash equivalents on hand. Sonic currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>