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Sonic Automotive (SAH) Q1 Earnings & Sales Top Estimates, Up Y/Y

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Sonic Automotive, Inc. (SAH - Free Report) registered first-quarter 2021 adjusted earnings per share of $1.23 per share, beating the Zacks Consensus Estimate of 94 cents. Higher-than-expected sales and gross profit from new vehicle and used vehicle segments led to this outperformance.

The bottom line is also significantly higher than the 40 cents per share reported in the year-ago quarter. Total revenues amounted to $2,787 million, up from the prior-year figure of $2,308 million. Moreover, revenues topped the Zacks Consensus Estimate of $2,539 million.

Key Takeaways

For the reported quarter, revenues from the sale of new vehicles jumped 20.5% year over year to $1,156.3 million and surpassed the consensus mark of $1,023 million. Unit sales volume increased 12.1% year on year to 24,358, while gross profit per unit surged 36.4% to $2,852. Gross profit totaled $69.5 million, outpacing the consensus mark of $61 million.

Revenues from the sale of used vehicles increased 28.2% from the prior-year level to $1,090.1 million and surpassed the consensus mark of $982 million. Unit sales surged from 26,038 in the prior-year period to 27,236 in the reported quarter. Gross profit per unit dipped 5.3% year over year to $1,175. Gross profit totaled $32 million, outpacing the consensus mark of $27.63 million.

For the reported quarter, the EchoPark segment recorded revenues of $507.1 million, reflecting a 52.9% jump from the year-ago figure. Its stores sold 22,531 units, up 43% on a year-over-year basis. The segment’s gross profit climbed 44.3% from the prior-year quarter to $45.9 million.

Wholesale vehicle revenues surged 54.1% on a year-over-year basis to $74.8 million. Revenues from parts, services and collision repair fell 4.1% year over year to $320.9 million. Finance, insurance and other revenues came in at $144.6 million, up from the $115.3 million recorded in the corresponding quarter of 2020.

Selling, general and administrative expenses flared up 2.6% year over year to $289.4 million for the quarter. The company’s board of directors announced a quarterly dividend of 12 cents per share, which will be paid out on Jul 15, to shareholders of record on Jun 15, 2021.

As of Mar 31, Sonic — peers of which include Lithia Motors (LAD - Free Report) , AutoNation (AN - Free Report) and Group 1 Automotive (GPI - Free Report) — had $77.2 million of cash and cash equivalents on hand. Long-term debt summed $637.4 million. Sonic currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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