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Why Is Sonic Automotive (SAH) Down 5.5% Since Last Earnings Report?
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It has been about a month since the last earnings report for Sonic Automotive (SAH - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sonic Automotive due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Sonic Q4 Earnings Miss Expectations, Revenues Decline Y/Y
Sonic posted fourth-quarter 2025 adjusted earnings per share of $1.52, which increased 1% year over year but missed the Zacks Consensus Estimate of $1.53. Total revenues declined 1% year over year to $3.87 billion and missed the consensus estimate of $3.91 billion.
Q4 in Detail
On a consolidated basis, revenues from new vehicles totaled $1.88 billion, down 4% year over year. Used-vehicle revenues increased 1% to $1.21 billion, while wholesale vehicle revenues declined 11% to $63.6 million. Revenues from parts, service and collision repair rose 8% to $515.3 million. Finance, insurance and other revenues grew 6% year over year to $202.3 million. Total gross profit increased 4% to $598.7 million.
In the Franchised Dealerships segment, new-vehicle revenues totaled $1.86 billion, down 4% year over year. Used-vehicle revenues rose 6% to $799.7 million, while wholesale vehicle revenues declined 16% to $41.8 million. Revenues from parts, service and collision repair increased 8% to $507.8 million, and finance, insurance and other revenues climbed 6% to $149.1 million. The segment’s same-store revenues fell 5% year over year to $3.19 billion. Same-store retail new and used vehicle units declined 4% to 55,122 compared with the year-ago quarter.
The EchoPark segment reported quarterly revenues of $480.7 million, down 5% year over year. Used-vehicle sales contributed $407.5 million, declining 7%, while wholesale vehicle revenues edged up 0.5% to $21.5 million. Finance, insurance and other revenues increased 6% to $51.7 million. During the quarter, EchoPark sold 15,743 used vehicles, down 6% year over year, and 2,365 wholesale vehicles, down 14% compared with the prior-year period.
In the Powersports segment, new-vehicle revenues rose 17% year over year to $20.4 million, while used-vehicle revenues increased 40% to $6.6 million. Wholesale vehicle revenues surged 300% to $0.4 million. Revenues from parts, service and collision repair climbed 7% to $7.5 million, and finance, insurance and other revenues totaled $1.5 million. The segment’s same-store revenues increased 17% to $33.4 million. Same-store retail new and used vehicle units grew 16% year over year to 1,584.
Other Tidbits
In the fourth quarter, Sonic Automotive’s selling, general and administrative (SG&A) expenses declined 9% year over year, accounting for 72.4% of gross profit, compared with the prior-year period.
SAH had cash & cash equivalents of $6.3 million as of Dec. 31, 2025, down from $44 million as of Dec. 31, 2024. Long-term debt was $1.62 billion as of Dec. 31, 2025, up from $1.59 billion as of Dec. 31, 2024.
During the fourth quarter, Sonic Automotive repurchased approximately 0.6 million shares for $38.3 million. For full-year 2025, the company bought back roughly 1.3 million shares for a total of approximately $82.4 million.
Sonic Automotive announced a quarterly dividend of 38 cents per share, which will be paid out on April 15, 2026, to its stockholders of record as of March 13, 2026.
Sonic Provide 2026 Guidance
In the Franchised Dealerships Segment, Sonic expects new vehicle GPU in the range of $2,700 to $3,000 per unit. Used vehicle GPU is anticipated in the range of $1,300 to $1,400 per unit. The company expects F&I GPU in the range of $2,600 to $2,700 per unit.
In the EchoPark Segment, the company expects adjusted EBITDA between $25-$35 million. Total GPU is expected in the range of $3,400 to $3,600 per unit.
In the Powersports Segment, the company expects 2026 adjusted EBITDA between $12 million and $15 million.
Sonic Automotive sees FY26 SG&A in low-70% range, with floor plan interest set to rise about 10% and tax rate projected in the band of 28-29%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted 10.29% due to these changes.
VGM Scores
Currently, Sonic Automotive has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. It's no surprise Sonic Automotive has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Sonic Automotive (SAH) Down 5.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Sonic Automotive (SAH - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sonic Automotive due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Sonic Q4 Earnings Miss Expectations, Revenues Decline Y/Y
Sonic posted fourth-quarter 2025 adjusted earnings per share of $1.52, which increased 1% year over year but missed the Zacks Consensus Estimate of $1.53. Total revenues declined 1% year over year to $3.87 billion and missed the consensus estimate of $3.91 billion.
Q4 in Detail
On a consolidated basis, revenues from new vehicles totaled $1.88 billion, down 4% year over year. Used-vehicle revenues increased 1% to $1.21 billion, while wholesale vehicle revenues declined 11% to $63.6 million. Revenues from parts, service and collision repair rose 8% to $515.3 million. Finance, insurance and other revenues grew 6% year over year to $202.3 million. Total gross profit increased 4% to $598.7 million.
In the Franchised Dealerships segment, new-vehicle revenues totaled $1.86 billion, down 4% year over year. Used-vehicle revenues rose 6% to $799.7 million, while wholesale vehicle revenues declined 16% to $41.8 million. Revenues from parts, service and collision repair increased 8% to $507.8 million, and finance, insurance and other revenues climbed 6% to $149.1 million. The segment’s same-store revenues fell 5% year over year to $3.19 billion. Same-store retail new and used vehicle units declined 4% to 55,122 compared with the year-ago quarter.
The EchoPark segment reported quarterly revenues of $480.7 million, down 5% year over year. Used-vehicle sales contributed $407.5 million, declining 7%, while wholesale vehicle revenues edged up 0.5% to $21.5 million. Finance, insurance and other revenues increased 6% to $51.7 million. During the quarter, EchoPark sold 15,743 used vehicles, down 6% year over year, and 2,365 wholesale vehicles, down 14% compared with the prior-year period.
In the Powersports segment, new-vehicle revenues rose 17% year over year to $20.4 million, while used-vehicle revenues increased 40% to $6.6 million. Wholesale vehicle revenues surged 300% to $0.4 million. Revenues from parts, service and collision repair climbed 7% to $7.5 million, and finance, insurance and other revenues totaled $1.5 million. The segment’s same-store revenues increased 17% to $33.4 million. Same-store retail new and used vehicle units grew 16% year over year to 1,584.
Other Tidbits
In the fourth quarter, Sonic Automotive’s selling, general and administrative (SG&A) expenses declined 9% year over year, accounting for 72.4% of gross profit, compared with the prior-year period.
SAH had cash & cash equivalents of $6.3 million as of Dec. 31, 2025, down from $44 million as of Dec. 31, 2024. Long-term debt was $1.62 billion as of Dec. 31, 2025, up from $1.59 billion as of Dec. 31, 2024.
During the fourth quarter, Sonic Automotive repurchased approximately 0.6 million shares for $38.3 million. For full-year 2025, the company bought back roughly 1.3 million shares for a total of approximately $82.4 million.
Sonic Automotive announced a quarterly dividend of 38 cents per share, which will be paid out on April 15, 2026, to its stockholders of record as of March 13, 2026.
Sonic Provide 2026 Guidance
In the Franchised Dealerships Segment, Sonic expects new vehicle GPU in the range of $2,700 to $3,000 per unit. Used vehicle GPU is anticipated in the range of $1,300 to $1,400 per unit. The company expects F&I GPU in the range of $2,600 to $2,700 per unit.
In the EchoPark Segment, the company expects adjusted EBITDA between $25-$35 million. Total GPU is expected in the range of $3,400 to $3,600 per unit.
In the Powersports Segment, the company expects 2026 adjusted EBITDA between $12 million and $15 million.
Sonic Automotive sees FY26 SG&A in low-70% range, with floor plan interest set to rise about 10% and tax rate projected in the band of 28-29%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted 10.29% due to these changes.
VGM Scores
Currently, Sonic Automotive has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. It's no surprise Sonic Automotive has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.