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Sonic (SAH) Earnings & Sales Miss Estimates in Q1, Up Y/Y
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Sonic Automotive, Inc. (SAH - Free Report) registered first-quarter 2022 adjusted earnings per share of $2.33, which missed the Zacks Consensus Estimate of $2.45. Lower-than-expected gross profit from new and used vehicle segments led to the underperformance. The bottom line, however, was 89.4% higher than $1.23 per share reported in the year-ago quarter. Total revenues amounted to $3,586.6 million, increasing 28.7% from the prior-year figure. The figure missed Zacks Consensus Estimate of $3,731 million.
Sonic Automotive, Inc. Price, Consensus and EPS Surprise
In the reported quarter, revenues from retail new vehicles rose 19.2% year over year to $1,351.3 million but missed the consensus mark of $1,446 million. Same-store unit sales volume inched down 14.5% to 20,283, but gross profit per unit surged 134.4% to $6,799. Gross profit totaled $137.9 million, lagging the consensus mark of $182 million.
Revenues from the sales of used vehicles surged 29.1% from the prior-year level to $853.7 million but lagged the consensus mark of $1,330 million. Same-store unit sales decreased 16.2% to 22,717 in the quarter under review. Gross profit per unit jumped 35.7% year over year to $1,728. Gross profit totaled $46.9 million, missing the consensus mark of $60 million.
The EchoPark segment recorded revenues of $625.3 million, reflecting a 23.3% uptick from the year-ago figure. Its stores sold 14,995 used-vehicle units, down 23.8% on a year-over-year basis. The segment’s gross profit decreased 3.5% to $44.3 million.
Wholesale vehicle revenues soared 125.5% on a year-over-year basis to $168.7 million but missed the consensus mark of $196 million. Revenues from parts, services and collision repair were up 18.6% year over year to $380.5 million but missed the Zacks Consensus Estimate of $418 million. Finance, insurance and other revenues came in at $166.6 million, up 15.1% from the corresponding quarter of 2021. The metric beat the consensus estimate of $149 million.
Financials
Sonic had cash and cash equivalents of $360.2 million as of Mar 31, 2022, up from $299.4 million in the corresponding period of 2021. Total debt was $1,493.2 million as of Mar 31, 2022, down from the $1,510.7 million recorded on Dec 31, 2021.
Selling, general and administrative expenses flared up 33.7% year over year to $387 million in the quarter. The board of directors approved a quarterly cash dividend of 25 cents per share, payable on Jul 15, 2022, to all stockholders of record on Jun 15, 2022. Since the end of the fourth quarter of 2021, Sonic has repurchased around 1.7 million shares of its Class A Common Stock for an aggregate purchase price of nearly $76.1 million.
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Dorman Products has an expected earnings growth rate of 18.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.7% upwards in the past 60 days.
Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 2.1% over the past year.
Tesla has an expected earnings growth rate of 66.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 18.7% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 41.27%, on average. The stock has gained 31.8% over the past year.
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Sonic (SAH) Earnings & Sales Miss Estimates in Q1, Up Y/Y
Sonic Automotive, Inc. (SAH - Free Report) registered first-quarter 2022 adjusted earnings per share of $2.33, which missed the Zacks Consensus Estimate of $2.45. Lower-than-expected gross profit from new and used vehicle segments led to the underperformance. The bottom line, however, was 89.4% higher than $1.23 per share reported in the year-ago quarter. Total revenues amounted to $3,586.6 million, increasing 28.7% from the prior-year figure. The figure missed Zacks Consensus Estimate of $3,731 million.
Sonic Automotive, Inc. Price, Consensus and EPS Surprise
Sonic Automotive, Inc. price-consensus-eps-surprise-chart | Sonic Automotive, Inc. Quote
Quarter in Detail
In the reported quarter, revenues from retail new vehicles rose 19.2% year over year to $1,351.3 million but missed the consensus mark of $1,446 million. Same-store unit sales volume inched down 14.5% to 20,283, but gross profit per unit surged 134.4% to $6,799. Gross profit totaled $137.9 million, lagging the consensus mark of $182 million.
Revenues from the sales of used vehicles surged 29.1% from the prior-year level to $853.7 million but lagged the consensus mark of $1,330 million. Same-store unit sales decreased 16.2% to 22,717 in the quarter under review. Gross profit per unit jumped 35.7% year over year to $1,728. Gross profit totaled $46.9 million, missing the consensus mark of $60 million.
The EchoPark segment recorded revenues of $625.3 million, reflecting a 23.3% uptick from the year-ago figure. Its stores sold 14,995 used-vehicle units, down 23.8% on a year-over-year basis. The segment’s gross profit decreased 3.5% to $44.3 million.
Wholesale vehicle revenues soared 125.5% on a year-over-year basis to $168.7 million but missed the consensus mark of $196 million. Revenues from parts, services and collision repair were up 18.6% year over year to $380.5 million but missed the Zacks Consensus Estimate of $418 million. Finance, insurance and other revenues came in at $166.6 million, up 15.1% from the corresponding quarter of 2021. The metric beat the consensus estimate of $149 million.
Financials
Sonic had cash and cash equivalents of $360.2 million as of Mar 31, 2022, up from $299.4 million in the corresponding period of 2021. Total debt was $1,493.2 million as of Mar 31, 2022, down from the $1,510.7 million recorded on Dec 31, 2021.
Selling, general and administrative expenses flared up 33.7% year over year to $387 million in the quarter. The board of directors approved a quarterly cash dividend of 25 cents per share, payable on Jul 15, 2022, to all stockholders of record on Jun 15, 2022. Since the end of the fourth quarter of 2021, Sonic has repurchased around 1.7 million shares of its Class A Common Stock for an aggregate purchase price of nearly $76.1 million.
Zacks Rank & Key Picks
SAH currently carries a Zacks Rank #3 (Hold).
Better-ranked players in the auto space include BRP Group, Inc. (DOOO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Dorman Products (DORM - Free Report) and Tesla Inc. (TSLA - Free Report) , each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 11% over the past year.
Dorman Products has an expected earnings growth rate of 18.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.7% upwards in the past 60 days.
Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 2.1% over the past year.
Tesla has an expected earnings growth rate of 66.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 18.7% upward in the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 41.27%, on average. The stock has gained 31.8% over the past year.