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Sonic (SAH) Q2 Earnings & Sales Beat Estimates, Rise Y/Y

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Sonic Automotive, Inc. (SAH - Free Report) registered second-quarter 2021 adjusted earnings per share of $2.63 per share, which beat the Zacks Consensus Estimate of $1.64. Higher-than-expected sales from all segments led to the outperformance. The bottom line was also higher than 64 cents per share reported in the year-ago quarter. Total revenues amounted to $3,352.2 million, increasing 58% from the prior-year figure and beating the Zacks Consensus Estimate of $2,994 million.

Sonic Automotive, Inc. Price, Consensus and EPS Surprise

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 rose 62.5% year over year to $1,462.8 million and surpassed the consensus mark of $1,252 million. Unit sales volume increased 53.3% year on year to 30,488 and gross profit per unit surged 70.1% to $3,881. Gross profit totaled $118.3 million, outpacing the consensus mark of $71 million.

Revenues from the sale of used vehicles rose 56.6% from the prior-year level to $1,266.7 million and topped the consensus mark of $1,190 million. Unit sales increased from 23,973 in the prior-year period to 28,550 for the quarter under review. Gross profit per unit grew 52.4% year over year to $1,934. Gross profit totaled $55.2 million, outpacing the consensus mark of $30.83 million.

For the quarter under review, the EchoPark segment recorded revenues of $595.6 million, reflecting an 88.9% uptick from the year-ago figure. Its stores sold 21,261 units, up 61% on a year-over-year basis. The segment’s gross profit climbed 33.7% from the prior-year quarter to $36.2 million.

Wholesale vehicle revenues skyrocketed 155.6% on a year-over-year basis to $84.8 million and topped the consensus mark of $54 million. Revenues from parts, services and collision repair soared 39.2% year over year to $360.6 million and beat the Zacks Consensus Estimate of $329 million. Finance, insurance and other revenues came in at $177.2 million, up from $110.7 million recorded in the corresponding quarter of 2020. The metric also surpassed the consensus estimate of $159 million.

Selling, general and administrative expenses flared up 39.2% year over year to $320.6 million for the quarter under review. The board of directors announced a quarterly dividend of 102 cents per share, which will be paid out on Oct 15, 2021 to shareholders of record on Sep 15, 2021. As of Jun 30, Sonic — whose peers include Lithia Motors (LAD - Free Report) , AutoNation (AN - Free Report) and Group 1 Automotive (GPI - Free Report) — had $239.6 million of cash and cash equivalents on hand. Long-term debt summed $634.7 million. Sonic currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.