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's (SAH) Q4 Earnings Surpass Estimates, Struggle On Y/Y Basis
Read MoreHide Full Article
Sonic Automotive, Inc. (SAH - Free Report) registered fourth-quarter 2022 adjusted earnings per share of $2.61, which outperformed the Zacks Consensus Estimate of $2.26. Better-than-expected sales from the EchoPark segment led to the outperformance. But the bottom line fell nearly 1.8% from $2.66 per share reported in the year-ago quarter. Total revenues amounted to $3,591 million, an increase of 13%. The figure also surpassed the Zacks Consensus Estimate of $3,453 million.
Sonic Automotive, Inc. Price, Consensus and EPS Surprise
In the reported quarter, revenues from retail new vehicles increased 22% year over year to $1,555.3 million, missing the consensus mark of $1,718 million. Gross profit totaled $161 million, soaring 3% year over year but lagging the consensus mark of $198 million. Same-store unit sales volume increased by 5% to 23,416 however, gross profit per unit dipped 6% to $6,301.
Revenues from the sales of used vehicles went up 13% from the prior-year level to $823.4 million, lagging the consensus mark of $1,397 million. Gross profit totaled $38.4 million, declining 24%, also missing the consensus mark of $43.9 million. Same-store unit sales increased 6% to 23,624 in the quarter under review. Gross profit per unit came down 33% to $1,405.
The EchoPark segment reported quarterly revenues of $589.3 million, a 2% decline from the year-ago figure but beating the consensus metric of $562 million. Its stores sold 17,435 used vehicle units, up 11% on a year-over-year basis. The segment reported gross profit of $40.8 million, nearly the same as the previous quarter on a year-over-year basis but lagging the consensus metric of $48.53 million.
Wholesale vehicle revenues fell 28% on a year-over-year basis to $80 million, missing the consensus mark of $106 million. Revenues from parts, services and collision repair were up 12% to $411.1 million, crossing the Zacks Consensus Estimate of $402 million. Finance, insurance and other revenues came in at $173.8 million, up 15% from the corresponding quarter of 2021 and topping the consensus estimate of $150 million.
Financials
Selling, general and administrative expenses surged up by 7% year over year to $366.3 million in the quarter. The board of directors approved quarterly cash dividend, which amounted to 28 cents, same as the prior pay out, payable on Apr 14, 2023, to all stockholders of record on Mar 15, 2022. During the fourth quarter of 2022, Sonic repurchased around 0.7 million shares of its Class A Common Stock for an aggregate purchase price of nearly $35.8 million.
Zacks Rank & Key Picks
SAH currently has a Zacks Rank #4 (Sell).
A few better-ranked players in the auto space include Wabash National (WNC - Free Report) , Modine Manufacturing (MOD - Free Report) and Hyliion (HYLN - Free Report) . While WNC and MOD sport a Zacks Rank #1 (Strong Buy), HYLN carries a Zacks Rank #2 (Buy).
Wabash National is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
Hyliion provides electrified powertrain solutions for Class 8 commercial vehicles. The Zacks Consensus Estimate for HYLN’s 2023 sales implies year-over-year growth of 538.07%.
Image: Bigstock
Sonic's (SAH) Q4 Earnings Surpass Estimates, Struggle On Y/Y Basis
Sonic Automotive, Inc. (SAH - Free Report) registered fourth-quarter 2022 adjusted earnings per share of $2.61, which outperformed the Zacks Consensus Estimate of $2.26. Better-than-expected sales from the EchoPark segment led to the outperformance. But the bottom line fell nearly 1.8% from $2.66 per share reported in the year-ago quarter. Total revenues amounted to $3,591 million, an increase of 13%. The figure also surpassed the Zacks Consensus Estimate of $3,453 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 increased 22% year over year to $1,555.3 million, missing the consensus mark of $1,718 million. Gross profit totaled $161 million, soaring 3% year over year but lagging the consensus mark of $198 million. Same-store unit sales volume increased by 5% to 23,416 however, gross profit per unit dipped 6% to $6,301.
Revenues from the sales of used vehicles went up 13% from the prior-year level to $823.4 million, lagging the consensus mark of $1,397 million. Gross profit totaled $38.4 million, declining 24%, also missing the consensus mark of $43.9 million. Same-store unit sales increased 6% to 23,624 in the quarter under review. Gross profit per unit came down 33% to $1,405.
The EchoPark segment reported quarterly revenues of $589.3 million, a 2% decline from the year-ago figure but beating the consensus metric of $562 million. Its stores sold 17,435 used vehicle units, up 11% on a year-over-year basis. The segment reported gross profit of $40.8 million, nearly the same as the previous quarter on a year-over-year basis but lagging the consensus metric of $48.53 million.
Wholesale vehicle revenues fell 28% on a year-over-year basis to $80 million, missing the consensus mark of $106 million. Revenues from parts, services and collision repair were up 12% to $411.1 million, crossing the Zacks Consensus Estimate of $402 million. Finance, insurance and other revenues came in at $173.8 million, up 15% from the corresponding quarter of 2021 and topping the consensus estimate of $150 million.
Financials
Selling, general and administrative expenses surged up by 7% year over year to $366.3 million in the quarter. The board of directors approved quarterly cash dividend, which amounted to 28 cents, same as the prior pay out, payable on Apr 14, 2023, to all stockholders of record on Mar 15, 2022. During the fourth quarter of 2022, Sonic repurchased around 0.7 million shares of its Class A Common Stock for an aggregate purchase price of nearly $35.8 million.
Zacks Rank & Key Picks
SAH currently has a Zacks Rank #4 (Sell).
A few better-ranked players in the auto space include Wabash National (WNC - Free Report) , Modine Manufacturing (MOD - Free Report) and Hyliion (HYLN - Free Report) . While WNC and MOD sport a Zacks Rank #1 (Strong Buy), HYLN carries a Zacks Rank #2 (Buy).
Wabash National is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
Hyliion provides electrified powertrain solutions for Class 8 commercial vehicles. The Zacks Consensus Estimate for HYLN’s 2023 sales implies year-over-year growth of 538.07%.
You can see the complete list of today’s Zacks #1 Rank stocks here.